The RBI said in a statement that Dhanlaxmi Bank has been fined for contravention of a section of the Banking Regulation Act, 1949. Last month, the RBI imposed fines on many banks.
The Reserve Bank of India has imposed a fine on two banks of the country. This penalty has been imposed on both the banks for violating different rules. According to the Reserve Bank, Dhanlaxmi Bank has been fined Rs 27.5 lakh for violation of rules related to ‘Depositors’ Education and Awareness Fund Scheme’. At the same time, the central bank has also imposed a fine of Rs 20 lakh on Gorakhpur-based multi-state primary cooperative bank of Northeast (NE) and Middle Eastern (EC) railway employees for violating certain norms.Also Read: Post Office Scheme: Deposit Rs 95 daily, you will get Rs 14 lakh on maturity
The RBI said in a statement that Dhanlaxmi Bank has been fined for contravention of a section of the Banking Regulation Act, 1949. At the same time, this penalty has been imposed on the primary cooperative bank due to non-compliance of specific instructions.
Show cause notice was issued
Based on the financial position of the Multi-State Primary Co-operative Bank of Northeast (NE) and Middle Eastern (EC) Railway employees, specific instructions issued under the Supervisory Action Framework (SAF) in the Bank’s Inspection Report as on March 31, 2019, the statement said. Found out about non-compliance or violations. Based on the report, a show cause notice was issued to the cooperative bank.Also Read: PF New Rules: EPFO members follow this new rule to receive benefits of rs 7 lakhs
The central bank said, “The RBI, after considering the bank’s reply and oral submissions during the personal hearing, came to the conclusion that the above allegation of non-compliance or violation of its directions was substantiated and, therefore, warranted imposition of monetary penalty.” ”
RBI, however, added that the penalty is based on deficiencies in regulatory compliance and does not cast any question on the validity of any transaction or agreement entered into by the co-operative bank with its customers.Also Read: HDFC Bank aims to regain lost market share in 1 year after RBI lifts credit card ban
RBI fined dozens of banks in the month of July
In the month of July this year, the RBI had imposed a fine of Rs 5 crore on Axis Bank for violating certain provisions of its directions, including the Cyber Security Framework. Apart from this, in the beginning of July, RBI had imposed fines on 14 banks for violating certain rules related to disbursement of loans.Also Read: Know about up bhagya lakshmi yojana benefits and how to avail
In which the country’s largest State Bank of India (SBI) was also involved. Apart from this, RBI also imposed penalty on IndusInd Bank, Bandhan Bank and Bank of Baroda. RBI had imposed a fine ranging from Rs 50 lakh to Rs 2 crore on these banks[‘
