The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 50,000/- (Rupees Fifty Thousand only) on The Nilambur Co-operative Urban Bank Limited, Kerala for non-compliance with certain directions issued by RBI on ‘Co-operative Banks - Interest Rate on Deposits’. The bank had offered higher interest rates on non-resident (external) rupee deposits than domestic term deposits, hence RBI has imposed a penalty of Rs 50,000 on the Nilambur Co-operative Urban Bank.
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| RBI Imposes Rs 50,000 Penalty on Nilambur Co-operative Urban Bank |
RBI Imposes ₹50,000 Penalty on Nilambur Co-operative Urban Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹50,000/- on The Nilambur Co-operative Urban Bank Limited, Kerala for non-compliance with certain directions issued by RBI on ‘Co-operative Banks - Interest Rate on Deposits’.
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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. 1 lakh on Kamaraj Co-operative Town Bank Limited Tamil Nadu for non-compliance with specific directions issued by RBI.
RBI Imposes Penalty on Nilambur 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 Nilambur Co-operative Urban Bank had offered higher interest rates on Non-Resident (External) rupee deposits than those of corresponding domestic term 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.
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About Nilambur Co-operative Urban Bank
The Nilambur Co-operative Urban Bank started in 1939, with 50 members and capital of Rs.500/. The bank now has grown to 29719 members and Rs.312.48 Lakhs as share capital as on 31st March 2007. Senior Raja T.N. Manavedan Thirumulpad of Nilambur Kovilakam was the first member of the Bank.
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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