RBI imposes monetary penalty on Konnagar Samabaya Bank Limited and the Santragachi Co-operative Bank Limited
RBI imposed monetary penalty of Rs. 2 lakhs on the following co-operative banks for violation of non-compliance with directors issued by RBI on “Exposure Norms and Statutory or Other Restrictions.
The fine have been enforced in exercise of powers vested in RBI under the provisions of Section 47 A (1) ( C ) r/w Section 46 (4) (i) and Section 56 of the Banking Regulations Act, 1949, considering the failure of the banks to adhere to the prudential limits on gross and counterparty inter-bank exposures mentioned in directions issued by RBI.
The violations of the Reserve Bank directions were disclosed while the inspection of the above mentioned banks with reference to their financial position as on March 31, 2019. Considering the violations, notices were issued to the banks advising them to show cause as to why penalty should not be imposed for contravention of/ non-compliance with the directions.
The banks’ replies and additional submissions made in writing/during the personal hearing were considered, and RBI came to the conclusion that the aforesaid charges of contravention of/ non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty. 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 banks with their customers.
Decriminalization of the Limited Liability Partnership (LLP) Act, 2008 proposed
While declaring the Union Budget for the FY. 2021-22 the Finance Minister recommended the decriminalization of the Limited Liability Partnership (LLP) Act, 2008, along with decriminalizing the procedural and technical compoundable offenses under the Companies Act, 2013 is now complete.
Government to Introduce Single Securities Markets Code
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman proposed that the Government will amalgamate the provisions of the SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956, and Government Securities Act, 2007 into a single Securities Market Code.