Mumbai: Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore on Cooperatieve Rabobank U.A. for deficiencies in regulatory compliances.
The penalty has been imposed for contravention of certain provisions of the Banking Regulation Act, 1949 and directions related to 'transfer to reserve funds'.
RBI said it conducted a statutory Inspection for Supervisory Evaluation (ISE) of the bank with reference to the bank's financial position as on March 31, 2020.
Examination of the risk assessment report pertaining to the same, revealed contravention of the provisions of the Banking Regulation Act and the directions issued by RBI.
A show cause notice was issued to the bank.
"After considering the bank's reply to the notice, oral submission made during the personal hearing and examination of additional submissions made by the bank, RBI came to the conclusion that the charge of contravention of... provisions of the Act and RBI directions was substantiated and warranted imposition of monetary penalty on the bank," RBI said in a statement.
In another statement, RBI said a penalty of Rs 5 lakh has been imposed on Village Financial Services Ltd, Kolkata, for non-compliance with certain provisions of the Know Your Customer Directions, 2016.