Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹40.00 lakh on Himachal Pradesh State Co-operative Bank Ltd., Shimla, by order dated April 27, 2021. The penalty was imposed for non-compliance with regulatory directions issued by NABARD under the 'Review of Frauds - Guidelines on Monitoring and Reporting System'. RBI said a statutory inspection and related examination of correspondence on fraud reporting revealed contravention of the applicable directions and provisions of the Banking Regulation Act, 1949. After a show-cause notice, the bank's reply, and oral submissions in a personal hearing, RBI concluded that the charge was substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 40.0 L
- Entity Type
- Co-operative bank
- Location
- Shimla, Himachal Pradesh