The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs. five lakh on the Jalore Nagrik Sahakari Bank Ltd. on account of violation of the bank's guidelines.
In accordance with the provisions of Section 47 A (1) (c) read with 46 (4) of the Banking Regulation Act, 1949 (as applicable to co-operative Societies), the penalty was imposed for violation of guidelines relating to the breach of prudential inter-bank single and gross exposure limit, and giving donation exceeding the prescribed limit.
The apex bank had issued a notice to the bank based on the findings of their investigation, in response to which the bank submitted a written reply and also made a personal submission before the Executive Director of the RBI.
After considering the facts of the case, and the bank's reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the monetary penalty.
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