RBI Slaps Rs3 Lakh Penalty on Omkar Nagreeya Sahkari Bank
Moneylife Digital Team 17 April 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs3 lakh on Omkar Nagreeya Sahkari Bank Ltd from Kanpur in Uttar Pradesh (UP) for non-compliance with the directions issued by the banking regulator.
The Bank was penalised for non-compliance with the direction issued by RBI under the supervisory action framework (SAF) for primary urban cooperative banks (UCBs).
RBI's statutory inspection revealed that for terms and savings deposits, Omkar Nagreeya Sahkari Bank was offering higher interest rates than those provided by State Bank of India (SBI) in contravention of specific instructions issued under the SAF.
After considering the reply and oral submissions of the Bank during the personal hearing, RBI says it has concluded that the non-compliance charges with its directions were substantiated and warranted the imposition of a monetary penalty.
RBI says the penalty imposed on Omkar Nagreeya Sahkari Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered by the banks with their customers.
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