RBI imposes monetary penalty on Cooperatieve Rabobank U.A.

Case Brief

By an order dated August 11, 2021, RBI imposed a monetary penalty of Rs 1 crore on Cooperatieve Rabobank U.A. RBI said the penalty was for contravention of Section 11(2)(b)(ii) of the Banking Regulation Act, 1949 and its directions on transfer to reserve funds dated September 23, 2000. The action followed the statutory Inspection for Supervisory Evaluation and examination of the Risk Assessment Report for the bank's financial position as on March 31, 2020. After a show-cause notice, the bank's reply, oral submissions, and additional submissions were considered, RBI concluded that the contravention was substantiated and imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Act.