Mumbai: Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore on Cooperateive Rabobank U.A. for deficiencies in regulatory compliances. The penalty has been imposed for contravention of certain provisions of the Banking Regulation Act, 1949 and directions related to ‘transfer to reserve funds’. RBI said it conducted a statutory Inspection for Supervisory Evaluation (ISE) of the bank with reference to the bank’s financial position as on March 31, 2020. Examination of the risk assessment report pertaining to the same, revealed contravention of the provisions of the Banking Regulation Act and the directions issued by RBI.
The RBI had conducted a statutory Inspection for Supervisory Evaluation (ISE) with reference to the bank’s financial position as on March 31, 2019. The inspection and Risk Assessment Report examined by the RBI revealed contravention of the central bank’s provision and directions on transfer of 25 percent disclosed profits to reserve funds, the RBI said.
Subsequently, the central bank issued a notice to the bank. After considering the bank’s reply to the notice, the RBI decided that the violations warrant a monetary penalty, the central bank said.
