The Reserve Financial institution of India (RBI) on Tuesday imposed a penalty of Rs 2 lakh on Dhrangadhra Individuals’s Co-operative Financial institution, Surendranagar, Gujarat, for non-compliance with sure norms. The RBI mentioned the penalty has been imposed for non-compliance with RBI instructions on ‘Placement of Deposits with Different Banks by Major (City) Co-operative Banks (UCBs)’ and ‘Depositor Schooling and Consciousness Fund Scheme 2014’.
Giving particulars, the RBI mentioned the statutory inspection of the financial institution performed by it as regards to the financial institution’s monetary place as on March 31, 2018, and the inspection report thereto, revealed, inter alia, non-compliance with the instructions.
Subsequently, a discover was issued to the Dhrangadhra Individuals’s Co-operative Financial institution.
“After contemplating the financial institution’s reply to the discover and oral submissions made in the course of the private listening to, the RBI got here to the conclusion that the aforesaid fees have been substantiated and warranted imposition of financial penalty,” the RBI mentioned.
The central financial institution added that the penalty relies on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.