RBI fines Pudukkottai Co-operative Town Bank for non-compliance of guidelines
Bank of India (RBI) imposed a penalty of ₹25,000 on Pudukkottai Co-operative Town Bank Ltd for non-compliance of the directions issued on ‘Board of Directors - UCBs’. “The Reserve Bank of India (RBI) has, by an order dated October 12, 2023, imposed a monetary penalty of ₹25,000 on The Pudukkottai Co-operative Town Bank Ltd., Pudukkottai, Tamil Nadu (the bank).
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 (AACS)," said RBI in its notice released on Monday. The Co-operative bank has been fined for extending loans to its directors.
On the bank's failure to comply with RBI guidelines, the central bank has issued a notice to Pudukkottai Co-operative Town Bank to show cause as to why a penalty should not be imposed on it. After hearing the bank's reply to the notice and its oral submissions, the RBI concluded that the cooperative bank was guilty of violating rules and the mentioned directions issued by RBI were substantiated and warranted the imposition of monetary penalty on the bank.
Later in the day, two more financial institutions were fined for non-compliance with regulations, according to RBI notices released on Monday. Kolkata-based Sappers Finance and Consultancy Pvt Ltd.
was fined ₹1.50 lakh by the RBI for violating rules related to the acquisition/transfer of control of NBFC. “The Reserve Bank of India (RBI) has, by an order dated November 02, 2023, imposed a monetary penalty of ₹1.50 lakh (Rupees One lakh fifty thousand only) o Sappers Finance and Consultancy Pvt Ltd., Kolkata (the company) for non-compliance with the directions issued by RBI on (i) ‘Requirement for obtaining
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