The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI which took into the account the lender’s financial position as on March 31, 2019.
“The examination of the Risk Assessment Report and Inspection Report pertaining to ISE 2019, RBI letter dated October 27, 2020 and related correspondence in the matter, revealed, contravention of directions and non-compliance with opening of five savings deposit accounts in the name of a co-operative bank and failure to comply with the provisions of section 10A(2)(b) of the Act relating to composition of Board of Directors,” the RBI said in a statement.
The RBI said it had also issued a notice to the bank asking it to explain why a penalty should not be imposed on it.
“After considering the bank’s reply to the show cause notice, oral submissions made during the personal hearing and examination of additional submissions made by the bank, RBI came to the conclusion that contravention warranted imposition of monetary penalty on the bank,” the regulator said.
