The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh (Rupees One Lakh only) on The Karimnagar District Co-operative Central Bank Limited Telangana for contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). The Karimnagar District Co-operative Central Bank had sanctioned a loan to its director, which was in violation of Section 20 of BR Act 1949, hence RBI has imposed a fine of Rs. 1 lakh on the bank.
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| RBI Imposes Rs 1 lakh Penalty on Karimnagar District Co-operative Central Bank |
RBI Imposes ₹1 lakh Penalty on Karimnagar District Co-operative Central Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Karimnagar District Co-operative Central Bank Limited Telangana for contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
Section 20 of the BR Act 1949 refers to the restriction on the bank from granting loans against its shares and to directors and their relatives.
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
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Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Chittoor Co-operative Town Bank Limited Andhra Pradesh.
RBI Imposes Penalty on Karimnagar District Co-operative Central Bank: Background
The statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
- The Karimnagar District Co-operative Central Bank had sanctioned loans to its directors.
This action is based on deficiencies in statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
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