RBI imposes Rs 1-lakh penalty on Nashik-based bank
July 8th, 2008 | by admin |Rating: 0
Tuesday , July 08, 2008 at 1732 hrs The Reserve Bank of India has imposed a penalty of Rs 1 lakh on the Nashik-based Nasik Zilla Sarkari & Parisad Karmachari Sahakari Bank for violating its directives under the Banking Regulations Act, 1949.
The Bank had declared and paid dividend at the rate of five per cent without the RBI’s approval, an RBI release said.
Prior to imposing the monetary penalty, the RBI had issued a show-cause notice to the errant bank.
In response, the Bank submitted a written explanation. Based on the reply, the RBI came to the conclusion that the violation was substantiated and warranted imposition of penalty, the release added.
