Guwahati, Nov 5: The Reserve Bank of India (RBI) has imposed a penalty of 1 lakh on Tura Urban Co-operative Bank Ltd., Tura, due to non-compliance with specific directives under the Supervisory Action Framework (SAF).
This penalty, imposed under powers granted to RBI by Section 47A(1)(c) along with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, follows a statutory inspection conducted to review the bank’s financial position as of March 31, 2023. The inspection revealed instances of non-compliance with SAF directives, prompting RBI to issue a show-cause notice to the bank.
After considering the bank’s response and oral submissions during a personal hearing, RBI determined that certain charges were substantiated.
The violations were incurring capital expenditure exceeding Rs 25,000 per year without prior RBI approval, contrary to SAF directions and sanctioning fresh loans that exceeded the exposure limit prescribed under SAF.
RBI clarified that this penalty addresses deficiencies in regulatory compliance and does not affect the legality of any transactions or agreements between the bank and its customers. Additionally, RBI noted that further actions may be pursued if necessary.
