MANU/RPRL/0293/2024
Ministry : Reserve Bank of India
Department/Board : Press Release
Press Release No. : 2024-2025/208
Date : 29.04.2024
RBI imposes monetary penalty on The Central Co-operative Bank Limited, Bikaner, Rajasthan
The Reserve Bank of India (RBI) has, by an order dated April 16, 2024, imposed a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on The Central Co-operative Bank Limited, Bikaner, Rajasthan (the bank) for non-compliance with directions issued by the National Bank for Agriculture and Rural Development (NABARD) on 'Frauds-Guidelines for Classification, Reporting and Monitoring'. This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by NABARD with reference
to its financial position as on March 31, 2022. Based on supervisory findings of
non-compliance with NABARD directions and related correspondence in that regard,
a notice was issued to the bank advising it to show cause as to why penalty
should not be imposed on it for its failure to comply with the said directions.
After considering the bank's reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the charge of delay in reporting of frauds was sustained, warranting imposition of monetary penalty.
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. Further, imposition of this monetary
penalty is without prejudice to any other action that may be initiated by RBI
against the bank.
(Yogesh Dayal)
Chief General Manager