RBI imposes monetary penalty of Rs 1 crore on Cooperateive Robobank | Business Upturn

RBI imposes monetary penalty of Rs 1 crore on Cooperateive Robobank

Last month, RBI had imposed a monetary penalty on 14 banks.

On August 12, as reported by Moneycontrol, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹1 crore on the Dutch banking company Coöperatieve Rabobank U.A. over violation of provisions related to the transfer of reserve funds.

According to the RBI, the penalty was imposed due to the non-compliance of directions related to the transfer of 25 per cent of disclosed profits to reserve funds as against the level of prescribed 20 per cent.

Furthermore, the central bank said that it had conducted a statutory Inspection for Supervisory Evaluation (ISE) concerning the bank’s financial position as of March 31, 2019.

After the inspection and examination of the Risk Assessment Report by the apex bank, it was revealed contravention of the RBI’s provisions, as well as directions on the transfer of 25 per cent, disclosed profits to reserve funds.

Subsequently, the RBI issued a notice to the Dutch bank and after considering its reply to the notice, the central bank decided that the violations warrant a monetary penalty.

On Wednesday, the apex bank announced in a circular that it would penalize banks for the non-availability of cash at ATMs from October this year.

“The Scheme of Penalty for non-replenishment of ATMs has been formulated to ensure that sufficient cash is available to the public through ATMs”, the central bank added.