RBI slaps ₹1-cr penalty on Cooperatieve Rabobank U.A.

The Reserve Bank of India imposed a monetary penalty of ₹1-crore on Cooperatieve Rabobank UA

Coöperatieve Rabobank UA, Mumbai Branch, is a part of the Netherlands-based Rabobank Group.

The penalty has been imposed for contravention of Section 11 (2) (b) (ii) of the Banking Regulation Act, 1949, and Reserve Bank directions on Sections 17(1) and 11(2)(b)(ii) of Banking Regulation Act, 1949- Transfer to Reserve Funds, the central bank said in a statement.

The central bank said, “The statutory inspection for supervisory evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as of March 31, and the examination of the Risk Assessment Report pertaining to the same revealed, inter-alia, contravention of above-mentioned provisions of the Act and the directions issued by the RBI.

“In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the provisions of the Act and the RBI directions, as stated therein”, the statement added.

After considering the bank’s reply to the notice, oral submissions 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 aforesaid provisions of the Act and RBI directions was substantiated and warranted imposition of monetary penalty on the bank, the statement said.