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RBI fines Pudukkottai Co-operative Town Bank for non-compliance of guidelines


It was penalized by the Reserve Bank of India (RBI). 25,000 on Pudukkottai Town Bank Ltd for non-compliance of the instructions issued on ‘Board of Directors – UCBs’.

“The Reserve Bank of India (RBI) has imposed a monetary penalty, vide an order dated October 12, 2023. 25,000 on The Pudukkottai Co-operative Town Bank Ltd., Pudukkottai, Tamil Nadu (the bank). This penalty is imposed in exercise of the 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 (AACS),” said the its notification issued on Monday.

Also read: RBI imposes monetary penalty on State Bank of India, Indian Bank, Punjab & Sind Bank

The Co-operative bank was fined for lending to its directors. Regarding the bank’s failure to comply with RBI guidelines, the central bank has issued a notice to the Pudukkottai Town Cooperative Bank to show cause why it should not be penalized.

Also read: RBI imposes heavy fine on RBL Bank, Union Bank of India, Bajaj Finance for non-compliance of guidelines

After hearing the bank’s reply to the notice and its oral submissions, the RBI concluded that the co-operative bank was guilty of violation of rules and the said directions issued by RBI were justified and necessary to impose a monetary penalty on the bank.

Later in the day, two more financial institutions were fined for non-compliance with the regulations, according to RBI notices released on Monday.

Also read: RBI imposes monetary penalty on four cooperative banks. Details here

Sappers Finance and Consultancy Pvt Ltd was fined. which is based in Kolkata 1.50 lakh by the RBI for rules related to acquisition/transfer of NBFC control.

“The Reserve Bank of India (RBI) has imposed a monetary penalty, vide order dated November 02, 2023. 1.50 lakh (Rupees one lakh fifty thousand one) from Sappers Finance and Consultancy Pvt Ltd., Kolkata (the company) for non-compliance with the directions issued by RBI regarding (i) ‘Requirement of obtaining prior approval for RBI in cases of acquisition/transfer of control of Non-Banking Financial Companies (NBFCs)’; and (ii) ‘Instructions for Return of Non-Banking Financial Company (Reserve Bank), 2016,” read the RBI notification.

Also read: RBI slaps Paytm Payments Bank fined 5.4 crore for non-compliance with guidelines related to KYC, cyber security

In another announcement, the RBI announced a penalty of 2 lakh to Sangli Sahakari Bank Limited, Mumbai for violating the rules laid down by the central bank relating to the ‘Board of Directors-UCBs’.

“The Reserve Bank of India (RBI), vide order dated September 15, 2023, has imposed a monetary penalty. 2.00 lakh (Rupees Two lakh only) on Sangli Sahakari Bank Limited, Mumbai (the bank) for non-compliance of the directions issued by RBI on ‘Board of Directors-UCBs,” RBI said in its notification issued on Monday.

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Updated: 20 November 2023, 05:47 PM IST

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