RBI imposes monetary penalty on The Parwanoo Urban Co-operative Bank Limited, Parwanoo, Himachal Pradesh

Case Brief

By an order dated November 15, 2022, RBI imposed a monetary penalty on The Parwanoo Urban Co-operative Bank Limited, Parwanoo, Himachal Pradesh. The bank was found to have contravened section 35A and section 36(1)(a) read with section 56 of the Banking Regulation Act, 1949 by failing to comply with specific RBI directions issued under the Supervisory Action Framework (SAF). The non-compliance was identified through the bank's inspection report and risk assessment report for its financial position as on March 31, 2021. After issuing a show-cause notice and considering the bank's reply and submissions at personal hearing, RBI held the charge substantiated and imposed a penalty of Rs 3 lakh under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Act.