The banking regulator Reserve Bank of India (RBl) has imposed a monetary penalty of Rs 1 lakh on Priyadarshini Mahila Nagari Sahakari Bank, Beed, Maharashtra. This is after the cooperative bank violated specific directions issued to the bank by the RBI under Supervisory Action Framework (SAF).
RBI stated, "This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI."
This action is based on deficiencies in regulatory compliance.
The inspection report of the bank based on its financial position as on March 31, 2019, revealed non-adherence of specific directions issued to the bank by the RBI under SAF. Based on the same, a notice was issued and bank was asked to respond. Only after hearing the bank's side, the penalty was passed.