The Reserve Financial institution of India (RBI) has not too long ago undertaken a number of vital actions to implement regulatory compliance throughout numerous monetary establishments. This consists of the continued withdrawal of Rs 2000 banknotes, with substantial progress reported in be aware returns. Moreover, RBI has imposed financial penalties on a number of entities, together with banks and non-banking monetary corporations, for failing to stick to regulatory requirements. These actions underscore RBI’s dedication to sustaining monetary stability and guaranteeing adherence to its regulatory frameworks.
Withdrawal of Rs 2000 Denomination Banknotes – Standing Replace
The Reserve Financial institution of India (RBI) introduced the withdrawal of Rs 2000 denomination banknotes from circulation on Could 19, 2023. As of the most recent replace on August 1, 2024, Rs 2000 banknotes in circulation have decreased considerably from Rs 3.56 lakh crore to Rs 7261 crore, indicating a return of 97.96% of those notes.
Deposits and exchanges of Rs 2000 notes have been accessible in any respect financial institution branches till October 7, 2023. Since October 9, 2023, deposits are additionally accepted at 19 RBI Concern Places of work and thru India Publish.
Financial Penalties Imposed
RAR Fincare Restricted, Chennai, Tamil Nadu
- Penalty: Rs 25,000
- Motive: Non-compliance with RBI instructions on adjustments in administration.
- Particulars: Failure to acquire prior written permission from RBI for adjustments affecting over 30% of administrators.
Durgapur Mahila Co-operative Financial institution Restricted, Kolkata
- Penalty: Rs 1.00 lakh
- Motive: Breaches in prudential inter-bank limits and publicity norms.
- Particulars: Violations of inter-bank counterparty and gross publicity limits.
UCO Financial institution
- Penalty: Rs 2,68,30,000
- Motive: Non-compliance with a number of RBI instructions together with rates of interest on advances and deposits.
- Particulars: Points embody improper benchmarking of loans, inappropriate account openings, and failure to report frauds.
Cent Financial institution House Finance Restricted
- Penalty: Rs 2,10,000
- Motive: Non-compliance with KYC Instructions.
- Particulars: Failure to conduct periodic critiques of danger categorization of accounts.
Mahoba City Co-operative Financial institution Ltd., Mahoba, Uttar Pradesh
- Penalty: Rs 8.00 lakh
- Motive: Non-compliance with Earnings Recognition, Asset Classification, and publicity limits.
- Particulars: Points embody non-transfer of quantities to the Depositor Training and Consciousness Fund and misclassification of NPAs.
Uttarkashi Zila Sahkari Financial institution Ltd., Uttarkashi, Uttarakhand
- Penalty: Rs 2.00 lakh
- Motive: Violations of provisions associated to loans and fund transfers.
- Particulars: Sanctioning loans the place a director was a guarantor and failure to switch eligible quantities to the Depositor Training and Consciousness Fund.
U.P. Postal Major Co-operative Financial institution Ltd., Lucknow, Uttar Pradesh
- Penalty: Rs 3.00 lakh
- Motive: Non-compliance with Supervisory Motion Framework (SAF) instructions.
- Particulars: Providing greater deposit rates of interest than allowed.