Tuesday, October 19, 2021
HomeRBIRBI imposes monetary penalty on Millath Co-operative Bank

RBI imposes monetary penalty on Millath Co-operative Bank

The Reserve Bank of India (RBI) has imposed, by an order dated November 3, 2020, a monetary penalty of ₹10.00 lakh (Rupees ten lakh only) on Millath Co-operative Bank for non-adherence / violation of All-Inclusive Directions and other directions imposed on the bank. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019 revealed inter alia, violation / non-compliance with the All-Inclusive Directions issued by Reserve Bank of India (RBI) on permitting of withdrawals in excess of the stipulated amount and sanctioning of fresh loans and advances in violation of directions issued under Supervisory Action Framework (SAF). Based on the same a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank’s reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

Leave a Reply

Follow Us

2,057FansLike
924FollowersFollow
52FollowersFollow
spot_img

Recent Posts

GST audit

GST Audit Checklist – 7 Essential Checkpoints For a Perfect GST Audit Tool

0
GST was introduced in the nation to ease the taxpayers' efforts and bring uniformity in the taxation structure of India. Businesses with multiple registrations still...
CBDT

CBDT clarification regarding carry forward of losses

0
CBDT clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment Aims to make disinvestment deals more attractive for...
Credit Guarantee

Emergency Credit Line Guarantee Scheme modified and Extended till 31.03.2022

0
Ministry of Finance vide press release 1759251 dated 29th September 2021 has extended the scope of ECLGS’ and scheme extended till 31.03.2022 or till...
COMPLIANCE CALENDAR

Statutory Compliance Calendar for October, 2021

0
About ARTICLE: This article contains various Compliance requirements for the Month of October, 2021 under various Statutory Laws. Compliance requirement under Income Tax Act, 1961 Sl. Compliance Particulars Due...
e invoicing

e-Invoicing Under GST : 7 Positive Impacts on Small & Medium Businesses

0
e Invoicing in GST is the new face of the GST structure in India. It is a positive step taken by the government to...

Most Popular