The Reserve on Monday imposed a fine of Rs 2 crore for violation of deposit, board composition norms. conducted a test reserve Bank of India showed that the private lender was not compliant in opening five savings deposit accounts for a co-operative bank.

NS Statutory Inspection for Supervisory Evaluation (ISE) Bank was governed by the RBI which took into account the financial position of the lender as on March 31, 2019.

“Scrutiny of the Risk Assessment Report and Inspection Report relating to ISE 2019, RBI letter dated October 27, 2020 and related correspondence in the matter, revealed, violation of instructions and non-compliance with opening of five savings deposit accounts in the name of a co-operative Failure to comply with the provisions of section 10A(2)(b) of the Act relating to banks and structures Board of directors,” RBI said in a statement.

RBI said that it has also issued a notice to the bank asking why penalty should not be imposed on it.

The regulator said, “After considering the bank’s reply to the show cause notice, oral submissions made during the personal hearing and examination of the additional submissions made by the bank, RBI came to the conclusion that the monetary should be fined.”