Category: Press Releases

The performance of the Indian Overseas Bank, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision. It was noted that as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters. The bank has provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and Leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.

Taking all the above into consideration, it has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/953

The Reserve Bank of India (RBI) has imposed, by an order dated September 29, 2021, a monetary penalty of ₹2.50 lakh (Rupees two lakh fifty thousand only) on The Madura Sourashtra Co-operative Bank Ltd. (A-336) for non-adherence / violation of directions issued under Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action 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.

Background

The inspection report of the bank based on its financial position as on March 31, 2020 revealed inter alia, violation / non-compliance with directions issued under Supervisory Action Framework (SAF). Based on the same a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank’s reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/951

Ajit Prasad
Director   

Press Release: 2021-2022/950

Ajit Prasad
Director   

Press Release: 2021-2022/949

The Reserve Bank of India (RBI) has, by an order dated September 28, 2021, imposed a monetary penalty of ₹10 lakh (Rupees Ten Lakh only) on Amrit Malwa Capital Limited, Jalandhar, Punjab (the company), for non-compliance with certain provisions of the ‘Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016’. The penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934 taking into account the failure of the company to adhere to the aforesaid RBI directions.

This action 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 company with its customers.

Background

The statutory inspection of Amrit Malwa Capital Limited, with reference to its financial position as on March 31, 2019 and March 31, 2020 and the Inspection Reports pertaining thereto revealed, non-compliance with the statutory directions, including, inter alia, the company’s failure to submit to RBI, certain quarterly and half yearly returns on time. In furtherance to the same, a notice was issued to the company advising it to show cause why penalty should not be imposed on it for failure to comply with the directions issued by RBI.

After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/946

In terms of GOI Notification F.No. 4(19)-W&M/2014 dated March 04, 2016 (SGB 2016 II- Issue date March 29, 2016) and Notification F.No. 4(7)-W&M/2016 dated August 29, 2016 (SGB 2016-17, Series II- Issue date September 30, 2016) of Sovereign Gold Bond (SGB) Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Therefore, the forthcoming due dates of premature redemption of the above tranches shall be September 29 and 30, 2021 respectively. Further, the redemption price of SGB shall be based on the simple average closing gold price of 999 purity [published by the India Bullion and Jewellers Association Ltd (IBJA)] of the week (Monday-Friday) preceding the date of redemption.

2. Accordingly, the redemption price for the premature redemption due on September 29 and 30, 2021 shall be ₹4652/- (Rupees Four thousand six hundred fifty-two only) per unit of SGB based on the simple average of closing gold price for the week September 20-24, 2021.

Ajit Prasad
Director   

Press Release: 2021-2022/945