The Reserve Bank of India (RBl) on Monday informed that it has imposed a monetary penalty of Rs 1 lakh on Chhattisgarh’s Pragati Mahila Nagrik Sahakari Bank Maryadit, Bhilai for non-compliance with certain directions issued by the central bank.
The RBI said the bank had sanctioned unsecured advances above the permissible limit in certain cases in contravention of directions issued by the regulator.
Based on the same, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.
After considering the bank’s replies, the RBI said it came to the conclusion that the charge of non-compliance was substantiated and warranted the imposition of a monetary penalty.
The RBI, however, said that this action was based on deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
This comes just a week after the central bank had fined LIC Housing Finance and three other co-operative banks – Mysore’s City Co-operative Bank Ltd, Mysore Merchants Co-operative Bank Ltd, and Mumbai’s Pratap Co-operative Bank Ltd.
In a statement on October 31, the RBI said it had imposed a penalty of Rs 5 lakh on LIC Housing Finance Limited, Mumbai. It said the statutory inspection of the housing finance company had revealed the company’s failure to create a floating charge in favour of its depositors on a portion of the assets invested by it in terms of section 29B of NHB (National Housing Bank) Act, and non-registration of such charge with the Registrar of Companies.
The City Co-operative Bank was fined Rs 2 lakh because it sanctioned gold loans in breach of the cap under the bullet repayment scheme.
