The Reserve Bank of India (RBl) has imposed a monetary penalty of Rs. 2.25 lakh (Rupees Two Lakh Twenty Five Thousand only) on Beed District Central Co-operative Bank Limited Maharashtra for contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’.
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| RBI Imposes Rs 2.25 lakh Penalty on Beed District Central Co-operative Bank |
RBI Imposes ₹2.25 lakh Penalty on Beed District Central Co-operative Bank
The Reserve Bank of India (RBl) has imposed a monetary penalty of ₹2.25 lakh on Beed District Central Co-operative Bank Limited Maharashtra for contravention of provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’.
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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 BR Act and Section 25 of the Credit Information Companies (Regulation) Act, 2005.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh on The Sultan’s Battery Co-operative Urban Bank Limited, Wayanad, Kerala for non-compliance with certain directions issued by RBI.
RBI Imposes Penalty on Beed District Central Co-operative Bank: Background
The statutory inspection of the bank was conducted by the 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 charges against the bank were sustained, warranting imposition of monetary penalty.
- The Beed District Central Co-operative Bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.
- The bank had failed to submit credit information of its customers to all the four CICs.
- The bank had failed to undertake requisite Customer Due Diligence (CDD) procedure while establishing account-based relationship in certain accounts.
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.
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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
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