The Reserve (RBI) on Wednesday imposed a monetary penalty of Rs 10.50 lakh on Shree Kanyaka Nagari Sahakari Bank Ltd, Chandrapur for violation of norms including fresh loans to the real estate sector. The inspection report of the bank based on the financial position as on March 31, 2018 and March 31, 2019 revealed that it had given fresh loans to the real estate sector in contravention of operating instructions, RBI said in a statement. Issued by reserve Bank of India And also open on-site ATMs without necessary permission.

Further, the Bank on several occasions delayed reporting of frauds, and also granted loans to the Director in contravention/compliance with the instructions.

A show cause notice was issued to it.

After considering the bank’s replies, oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the allegations of non-compliance with RBI’s directions were substantiated and warranted imposition of monetary penalty. Is.

In another statement, RBI said that a fine of Rs 2.50 lakh has been imposed on Nizamabad District Cooperative Society. Central Bank Limited, Nizamabad, Telangana, but for non-compliance/violation of certain instructions’Income Recognition, Asset ClassificationProvisions and other related matters – Urban Co-operative Banks.

However, the RBI said that in both the cases, the penalties were based on deficiencies in regulatory compliance and were not intended to impinge on the validity of any transaction or agreement entered into by banks with their customers.