RBI imposes monetary penalty on The Berhampur Co-operative Urban Bank Ltd., Odisha

 

The inspection report of the bank based on its financial position as on March 31, 2022 revealed, inter alia, that the bank had failed to (i) comply with the RBI directions on prudential inter-bank (gross) exposure limit and prudential inter-bank counter-party limit, (ii) allot Unique Customer Identification Codes (UCIC) to its individual customers; and (iii) adopt any system of periodic review of risk categorization of accounts. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank’s reply to the notice, additional submission and oral submissions made by it during the personal hearing, RBI came to the conclusion that the aforementioned charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

The Reserve Bank of India (RBI) has imposed, by an order dated June 21, 2023, a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on The Berhampur Co-operative Urban Bank Ltd., Odisha (the bank) for contravention of directions issued by RBI on (i) ‘Exposure Norms and Statutory/Other Restrictions - UCBs’ and (ii) ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

 

 

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RBI imposes monetary penalty on Panihati Co-operative Bank Ltd

 

The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022 and the examination of the Inspection Report revealed, inter alia, that the bank had failed to comply with RBI directions on (i) prudential inter-bank exposure both at the gross and counter party level and (ii) production of KYC documents for several accounts. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.

After considering the bank’s reply to the notice, additional submissions and oral submissions made by it during Personal Hearing, RBI came to the conclusion that the aforementioned charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

The Reserve Bank of India (RBI) has imposed, by an order dated June 20, 2023, a monetary penalty of ₹2,50,000/- (Rupees Two Lakh Fifty Thousand only) on Panihati Co-operative Bank Ltd. (the bank) for contravention of/ non-adherence with the directions issued by RBI on (i) “Exposure Norms and Statutory / Other Restrictions – UCBs” and (ii) “Know Your Customer (KYC) Direction, 2016”. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

 

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RBI imposes monetary penalty on Ujjain Nagarik Sahakari Bank Maryadit, Ujjain, Madhya Pradesh

 

The supervisory findings of the bank based on its financial position as on March 31, 2022, revealed, inter alia, that the bank had not complied with (i) prudential inter-bank (gross) exposure limit, and (ii) prudential inter-bank counter party limit in contravention of/non-compliance with the aforesaid directions issued by RBI. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid directions.

After considering the bank's replies to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty. 

The Reserve Bank of India (RBl) has imposed, by an order dated June 22, 2023, a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on Ujjain Nagarik Sahakari Bank Maryadit, Ujjain (Madhya Pradesh) (the bank) for contravention of/ non-adherence with the directions issued by RBI on ‘Exposure Norms & Statutory/Other Restrictions - UCBs’ and ‘Investments by Primary (Urban) Co-operative Banks’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

 

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RBI imposes monetary penalty on Uttar Pradesh Co-operative Bank Limited, Lucknow

 

The statutory inspection of the bank conducted by NABARD with reference to the bank’s financial position as on March 31, 2020 and examination of the Inspection Report and all related correspondence pertaining to the same revealed, inter alia, that the bank (i) failed to put into use any robust software as a part of effective identification and reporting of suspicious transactions; and (ii) levied penal charges for non-maintenance of minimum balances in inoperative accounts, during the financial year 2019-20. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the aforesaid directions.

After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid directions issued by RBI was substantiated and warranted imposition of monetary penalty.

The Reserve Bank of India (RBI) has, by an order dated June 23, 2023, imposed a monetary penalty of ₹28,00,000/- (Rupees Twenty-Eight Lakh only) on Uttar Pradesh Co-operative Bank Limited, Lucknow (the bank), for non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 and the directions of RBI on “Customer Service in State / District Central Co-operative Banks (StCBs / DCCBs)”. This penalty has been imposed in exercise of powers conferred on RBI under section 47A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949 (BR Act).

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

 

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RBI releases ‘Master Direction on Minimum Capital Requirements for Operational Risk’

 

The Reserve Bank of India has today issued the Master Direction on Minimum Capital Requirements for Operational Risk after appropriately considering the feedback received from stakeholders. The Directions have been issued in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949.

2. As part of convergence with Basel III standards, the Reserve Bank of India had issued a draft ‘Master Direction on Minimum Capital Requirements for Operational Risk’ on December 15, 2021, for public comments.

3. The Directions require all specified Commercial Banks (excluding Local Area Banks, Payments Banks, Regional Rural Banks, and Small Finance Banks) to hold sufficient regulatory capital against their operational risk exposures.

4. The effective date of implementation of these Directions shall be communicated separately.

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RBI imposes monetary penalty on CRIF High Mark Credit Information Services Private Limited, Mumbai

 

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021 and examination of the Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, that (i) certain data relating to the credit information maintained by the company was not accurate and complete, and (ii) on receipt of complaints from some borrowers, the company had neither updated the credit information relating to them nor informed them regarding the steps taken by it for correction of discrepancies and also the reasons for its inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints. Consequently, a notice was issued to the company advising it to show cause as to why penalty should not be imposed for its failure to comply with the provisions of the CIC (R) Act read with CIC Rules, as stated therein.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the provisions of CIC (R) Act and the CIC Rules were substantiated and warranted imposition of monetary penalty on the company.

The Reserve Bank of India (RBI) has, by an order dated June 26, 2023, imposed a monetary penalty of ₹25.75 lakh (Rupees Twenty five lakh seventy five thousand only) on CRIF High Mark Credit Information Services Private Limited, Mumbai (the company) for non-compliance with certain provisions of the Credit Information Companies (Regulation) Act, 2005 [CIC (R) Act] read with the Credit Information Companies Rules, 2006 [CIC Rules]. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of CIC (R) Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company.

 

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RBI imposes monetary penalty on Equifax Credit Information Services Private Limited, Mumbai

 

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021 and examination of the Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, that (i) certain data relating to the credit information maintained by the company was not accurate and complete, and (ii) on receipt of complaints from some borrowers, the company had neither updated the credit information relating to them nor informed them regarding the steps taken by it for correction of discrepancies and also the reasons for its inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints. Consequently, a notice was issued to the company advising it to show cause as to why penalty should not be imposed for its failure to comply with the provisions of the CIC (R) Act read with CIC Rules, as stated therein.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the provisions of CIC (R) Act and the CIC Rules were substantiated and warranted imposition of monetary penalty on the company.

The Reserve Bank of India (RBI) has, by an order dated June 26, 2023, imposed a monetary penalty of ₹24.25 lakh (Rupees Twenty four lakh twenty five thousand only) on Equifax Credit Information Services Private Limited, Mumbai (the company) for non-compliance with certain provisions of the ‘Credit Information Companies (Regulation) Act, 2005’ [CIC (R) Act] read with the ‘Credit Information Companies Rules, 2006’ [CIC Rules]. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of CIC (R) Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company.

 

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RBI imposes monetary penalty on Standard Chartered Bank-India

 

The Statutory Inspection for Supervisory Evaluation (ISE 2021) of the bank was conducted by RBI with reference to its financial position as on March 31, 2021. The examination of the Risk Assessment Report/Inspection Report pertaining to ISE 2021 and review of compliance with KYC directions in the bank carried out by RBI and all related correspondence in that regard, revealed, inter-alia, that the bank allotted multiple customer identification code to some of its individual customers. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions issued by RBI, as stated therein.

After considering the bank’s reply to the notice, oral submissions made during the personal hearing and additional submissions made by it, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank, to the extent of non-compliance with such directions

The Reserve Bank of India (RBI) has, by an order dated June 26, 2023, imposed a monetary penalty of ₹30.00 lakh (Rupees Thirty Lakh only) on Standard Chartered Bank-India (the bank) for non-compliance with certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

 

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RBI imposes monetary penalty on TransUnion CIBIL Limited, Mumbai

 

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021 and examination of the Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, that (i) certain data relating to the credit information maintained by the company was not accurate and complete, and (ii) on receipt of complaints from some borrowers, the company had neither updated the credit information relating to them nor informed them regarding the steps taken by it for correction of discrepancies and also the reasons for its inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints. Consequently, a notice was issued to the company advising it to show cause as to why penalty should not be imposed for its failure to comply with the provisions of the CIC (R) Act read with CIC Rules, as stated therein.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the provisions of CIC (R) Act and the CIC Rules were substantiated and warranted imposition of monetary penalty on the company.

The Reserve Bank of India (RBI) has, by an order dated June 26, 2023, imposed a monetary penalty of ₹26 lakh (Rupees Twenty six lakh only) on TransUnion CIBIL Limited, Mumbai (the company) for non-compliance with certain provisions of the Credit Information Companies (Regulation) Act, 2005 [CIC (R) Act] read with the Credit Information Companies Rules, 2006 [CIC Rules]. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of CIC (R) Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company.

 

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RBI imposes monetary penalty on Experian Credit Information Company of India Private Limited, Mumbai

 

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021 and examination of the Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, that certain data relating to the credit information maintained by the company was not accurate and complete. Consequently, a notice was issued to the company advising it to show cause as to why penalty should not be imposed for its failure to comply with the provisions of the CIC (R) Act read with CIC Rules, as stated therein.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the provisions of CIC (R) Act and the CIC Rules were substantiated and warranted imposition of monetary penalty on the company.

 

The Reserve Bank of India (RBI) has, by an order dated June 26, 2023, imposed a monetary penalty of ₹24.75 lakh (Rupees Twenty four lakh seventy five thousand only) on Experian Credit Information Company of India Private Limited, Mumbai (the company) for non-compliance with certain provisions of the Credit Information Companies (Regulation) Act, 2005 [CIC (R) Act] read with the Credit Information Companies Rules, 2006 [CIC Rules]. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of CIC (R) Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company.

 

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