Mumbai (Maharashtra) [India], December 28 : The Reserve Bank of India (RBI) on Thursday said that it has imposed a monetary penalty of Rs 5,000 on West Bengal-based Sree Chaitanya Co-operative Bank in Nabadwip city for not complying with the directions issued by it on 'Membership of Credit Information Companies (CICs)'.
The central bank said that this penalty has been imposed in the exercise of powers conferred on RBI under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005 (CIC Act).
RBI further stated that the statutory inspection of the bank conducted by it with reference to its financial position as of March 31, 2022, and examination of the Inspection Report and all correspondence revealed that the bank had failed to obtain membership in any of the four CICs.
"Consequently, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the said directions, as stated therein," RBI said.
RBI also stated that after considering the bank's reply to the notice and oral submissions made by it during the personal hearing, it came to the conclusion that the charge of noncompliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor