The Reserve Bank had issued instructions in March 2019 prescribing certain restrictions on the bank. The directions were amended from time to time and were last extended till October 24, 2021.
“The Reserve Bank of India on being satisfied that it is necessary so to do in the public interest … is hereby withdrawn from the close of business on the 14th October, 2021, vide directions issued to The Hindu Sahakari Bank Ltd., Pathankot, Punjab ,” it said in a statement.
In another release, the RBI said that it has imposed a penalty of Rs 1 lakh on KNS Bank, Kurla Nagrik Sahakari Bank Ltd, Mumbai for violation of certain norms relating to the Depositor Education and Awareness Fund Scheme, 2014.
RBI said that the inspection report of the bank based on its financial position as on March 31, 2020, revealed that the bank had not transferred balances in certain accounts which remained unclaimed for more than ten years for depositor education and awareness. Were. Fund.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the bank with its customers.