The RBI has recently imposed a monetary penalty of Rs. 40 lakh on Himachal Pradesh State Cooperative Bank, Shimla, for non-compliance with certain regulatory directions issued by National Bank for Agriculture and Rural Development (NABARD).
As per RBI, the fine has been imposed for non-compliance with regulatory directions issued by NABARD contained in ‘Review of Frauds – Guidelines on Monitoring and Reporting System’.
Giving details, it said that the statutory inspection of the bank conducted by NABARD with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence regarding reporting of frauds, revealed, inter alia, non-compliance of the directions.
A notice, in this regard, was issued to the Himachal Pradesh State Co-operative Bank. After considering the bank’s reply to the notice and oral submissions made in the personal hearing, the RBI stated it came to the conclusion that the charge was substantiated and warranted imposition of monetary penalty.
The RBI, however, declared that the penalty has been imposed on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers