MUMBAI: The Reserve Bank of India (RBI) today said it has imposed a penalty of Rs 5-lakh on Pune-based Cosmos Co-operative Bank for violation of instructions/guidelines of the Reserve Bank of India (RBI).
The bank had violated RBI's directives by sanctioning loans to directors, their relatives and firms in which directors or their relatives are interested, the apex bank said in a statement issued here.
The bank has violated instructions by not publishing the correct amount of loans outstanding in the names of directors/relatives/firms in which they are interested in the 'notes on account' to the balance-sheet in the successive annual reports during 2004 to 2009, the statement said.
Cosmos had not furnished correct information in the quarterly control returns submitted to RBI during the period 2004 to 2009. "None of the 43 loans sanctioned in violation of directives were reflected in the OSS data submitted to Reserve Bank of India," the statement said.
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the fact of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, the apex bank said.
The bank had violated RBI's directives by sanctioning loans to directors, their relatives and firms in which directors or their relatives are interested, the apex bank said in a statement issued here.
The bank has violated instructions by not publishing the correct amount of loans outstanding in the names of directors/relatives/firms in which they are interested in the 'notes on account' to the balance-sheet in the successive annual reports during 2004 to 2009, the statement said.
Cosmos had not furnished correct information in the quarterly control returns submitted to RBI during the period 2004 to 2009. "None of the 43 loans sanctioned in violation of directives were reflected in the OSS data submitted to Reserve Bank of India," the statement said.
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the fact of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, the apex bank said.
courtesy : The Economic Times
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