Press Releases

PDF document (310 kb)
Date : Nov 06, 2023
RBI imposes monetary penalty on The Jolarpet Co-operative Urban Bank Limited, Dist. Vellore, Tamil Nadu

The Reserve Bank of India (RBI) has, by an order dated October 12, 2023, imposed a monetary penalty of ₹50,000/- (Rupees Fifty thousand only) on The Jolarpet Co-operative Urban Bank Limited, Dist. Vellore, Tamil Nadu (the bank) for non-compliance with the directions issued by RBI on ‘Board of Directors - UCBs’ read with the directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949.

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 statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022, and examination of the Inspection Report, Risk Assessment Report and all correspondence related thereto revealed, inter alia, that the bank had extended loans to directors and their relatives. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the aforesaid directions, as stated therein.

After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1246


2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Archives
Top