The Reserve Bank of India on Tuesday mentioned it has imposed a penalty of Rs 40 lakh on Himachal Pradesh State Cooperative Bank, Shimla, for non-compliance with sure regulatory instructions issued by NABARD.
The penalty has been imposed for non-compliance with regulatory instructions issued by NABARD contained in ‘Review of Frauds – (*40*) on Monitoring and Reporting System’, the Reserve Bank of India mentioned on Tuesday.
Giving particulars, it mentioned the statutory inspection of the bank performed by the National Bank for Agriculture and Rural Development (NABARD) as regards to the bank’s monetary place as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all associated correspondence concerning reporting of frauds, revealed, inter alia, non-compliance of the instructions.
A discover was issued to the Himachal Pradesh State Co-operative Bank. After contemplating the bank’s reply to the discover and oral submissions made within the private listening to, the RBI mentioned it got here to the conclusion that the cost was substantiated and warranted imposition of financial penalty.
The RBI, nonetheless, added penalty has been imposed on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the bank with its prospects. (With PTI Inputs)
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