RBI withdraws restrictions on Hindu Cooperative Bank, Pathankot – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-withdraws-restrictions-on-hindu-cooperative-bank-pathankot/articleshow/87023788.cmsSynopsis

The RBI, however, added the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers

The RBI on Thursday withdrew all restrictions imposed on Hindu Cooperative Bank Limited, Pathankot.

The Reserve Bank had issued directions stipulating certain restrictions on the bank in March 2019. The directions were modified from time to time and were last extended up to October 24, 2021.

“The Reserve Bank of India on being satisfied that in the public interest it is necessary to do so…hereby, withdraws with effect from close of business on October 14, 2021, the said directions so issued to Hindu Cooperative Bank Limited, Pathankot, Punjab,” it said in a statement.

In another release, the RBI said it has imposed a penalty of Rs 1 lakh on KNS Bank, The Kurla Nagarik Sahakari Bank Ltd, Mumbai for contravention certain norms related to Depositor Education and Awareness Fund Scheme, 2014.

The RBI said the inspection report of the bank based on its financial position as on March 31, 2020, revealed, inter alia, that the bank had not transferred balances, in certain accounts which were unclaimed for more than ten years to Depositor Education and Awareness Fund.

The RBI, however, added the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers

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