The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh (Rupees One Lakh only) on The Sultan’s Battery Co-operative Urban Bank Limited, Wayanad, Kerala for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’. The Sultans Battery Co-operative Urban Bank had sanctioned loans related to directors, due to which the RBI had imposed a fine of Rs 1 lakh on the bank.
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| RBI Imposes Rs 1 lakh Penalty on Sultan’s Battery Co-operative Urban Bank |
RBI Imposes ₹1 lakh Penalty on Sultan’s Battery Co-operative Urban Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Sultan’s Battery Co-operative Urban Bank Limited, Wayanad, Kerala for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’.
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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. 2.25 lakh on Beed District Central Co-operative Bank Limited Maharashtra.
RBI Imposes Penalty on Sultan’s Battery Co-operative Urban 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 charge against the bank was sustained, warranting imposition of monetary penalty.
- The Sultan’s Battery Co-operative Urban Bank had sanctioned director related loans.
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.
About Sultan’s Battery Co-operative Urban Bank
The Sultan’s Battery Co-operative Urban Bank registered on 8th September 1975 as a Primary Co-operative Urban Society under Kerala co-operative societies act 1969 named The Sultans Battery Co-operative Urban Society Ltd.
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Mathai Nooranal was the Chief promoter and he was also the First President of bank. started functioning on 3rd November 1975 with an initial capital of Rs.9700/ with only 86 members. The registered office of the bank is located on Sultan’s Battery in Sultan’s Battery Taluk of Wayanad District.
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.
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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
Static Current Affairs related to Sultan’s Battery Co-operative Urban Bank for upcoming exams
- Registered on: 8th September 1975
- Chairman: D P Rajasekharan Nair
- Vice Chairman: Thomas VJ
- Chief Executive Officer: Manoj OT
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