The Reserve Bank of India (RBI) on Tuesday imposed monetary penalties totaling 11 lakh on Bijnor Urban Co-operative Bank Limited, Bijnor and National Urban Co-operative Bank Limited, New Delhi for violation of certain standards.

A fine of 6 lakh were imposed on Bijnor Urban Co-operative Bank Limited, and 5 lakh on the National Urban Co-operative Bank Limited, New Delhi.

The RBl imposed a fine of 6 lakh on Bijnor Urban Co-operative Bank Limited, Bijnor for breach of Articles 20 and 35A read with Article 56 of the Banking Regulation Act 1949 and the “Guarantees, Co-Acceptances and Letters of Credit” regulations The RBI said in a statement.

This penalty was imposed in the exercise of the powers conferred on RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Act on Banking Regulation, 1949, taking into account the bank’s failure to comply with the aforementioned provisions of the law and instructions issued thereunder by RBI, he added.

The inspection report of the Bijnor Urban Co-operative Bank on the basis of its financial situation as at March 31, 2019, revealed, among other things, that the bank had not complied with the provisions relating to the prohibition of loans linked to directors and the issuance of guaranteed performance, the central bank said.

In another statement, he said that the inspection report of the National Urban Cooperative Bank on the basis of its financial situation as of March 31, 2019, revealed, among other things, the non-compliance / violation of specific instructions issued to the bank by the RBI under surveillance. Framework for action (SAF).

RBI further stated that penalties were imposed on the basis of breaches of regulatory compliance and that it was not intended to rule on the validity of a transaction or agreement entered into by the two lenders. with their clients.

“After reviewing the bank’s response, the RBI came to the conclusion that the aforementioned charge of non-compliance / violation of the RBI’s instructions was founded and warranted the imposition of a monetary penalty,” he said. -he adds.

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