The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh (Rupees One Lakh only) on Kamaraj Co-operative Town Bank Limited Tamil Nadu for non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’.
 |
| RBI Imposes Rs 1 lakh Penalty on Kamaraj Co-operative Town Bank |
RBI Imposes ₹1 lakh Penalty on Kamaraj Co-operative Town Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on Kamaraj Co-operative Town Bank Limited Tamil Nadu for non-compliance with specific directions issued by RBI under ‘Supervisory Action Framework (SAF)’.
Read Also: RBI Imposes Rs 2.7 lakh Penalty on Muthoot FinCorp
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 Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 50,000/- on The Nilambur Co-operative Urban Bank Limited, Kerala for non-compliance with certain directions issued by RBI.
RBI Imposes Penalty on Kamaraj Co-operative Town Bank: Background
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty.
- In non-adherence to directions issued under Supervisory Action Framework (SAF), the Kamaraj Co-operative Town Bank had not reduced the single borrower exposure limit, for fresh loans and advances, by 50% of the applicable regulatory limit.
- In non-adherence to directions issued under SAF, the bank had sanctioned and disbursed fresh loans and advances not backed by collateral security of term deposits / NSCs / KVPs / insurance policies.
- In non-adherence to directions issued under SAF, the bank had expanded the size of the balance sheet.
- In non-adherence to directions issued under SAF, the bank had expanded the size of deposits.
This action is based 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Read Also: RBI Imposes Rs 44.7 lakh Penalty on Bandhan Bank
About Kamaraj Cooperative Town Bank
Kamaraj Cooperative Town Bank is a cooperative bank located in Polur, Tiruvannamalai, Tamil Nadu, providing high quality financial services to its customers. It is part of the Urban Co-operative Bank, Polur. The main objective of the bank is to meet the financial needs of its members.
About 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.
Read Also: RBI signs Currency Swap Agreement with Maldives Monetary Authority
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
Read Also: RBI appoints Aviral Jain as new Executive Director
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
0 Comments