The Reserve Bank of India on Tuesday said it has imposed a penalty of Rs 40 lakh on Himachal Pradesh State Cooperative Bank.
Reason
The penalty has been imposed for non-compliance with regulatory directions issued by NABARD contained in ‘Review of Frauds – Guidelines on Monitoring and Reporting System’.
RBI examined
The statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as of March 31, 2019 of all related correspondence regarding reporting of frauds, revealed, inter alia, non-compliance of the directions.
RBI issued notice
A notice was issued to the Himachal Pradesh State Co-operative Bank.
After considering the bank’s reply to the notice and oral submissions made in the personal hearing, the RBI said it came to the conclusion that the charge was substantiated and warranted imposition of monetary penalty.
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