Mumbai (Maharashtra) [India], August 8 (ANI): The Reserve Bank of India (RBI) said on Monday it has imposed a monetary penalty of Rs 2.51 lakh on the Goa State Co-operative Bank Ltd, Panaji, for non-compliance with certain provisions of the Banking Regulation Act.

The RBI issued an order in this regard on August 1, 2022. The Cooperative Bank has been penalised for non-compliance with section 9 read with section 56 of the Banking Regulation Act, 1949 (the Act), the RBI said.

"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," the central bank said in a statement.

A request made by the bank to RBI for granting an extension of time for disposing off non-banking asset and examination of all related correspondence revealed, inter alia, non-compliance by the bank with section 9 read with section 56 of the Act to the extent that the bank failed to dispose off the non-banking asset within the statutory timeline from the date of its acquisition.

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 aforesaid provisions of the Act.

After considering the bank's reply to the notice, the additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with section 9 read with section 56 of the Act was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the provisions of the Act, the RBI said. (ANI)