BHUBANESWAR: The Reserve Bank of India (RBI) has imposed a penalty on Odisha State Co-operative Bank (OSCB) Ltd for non-compliance with certain provisions of the Banking Regulation Act, 1949.Sources said a penalty of Rs 4 lakh has been imposed on OSCB Ltd for allegedly failing to dispose of certain non-banking assets and transfer eligible unclaimed amounts to the depositor education and awareness fund within the prescribed time.“The bank has been fined for its failure to comply with the provisions of Section 9 and Section 26A of the Banking Regulation Act, 1949,” RBI said in a statement on Friday.The action was taken after a statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as of March 31, 2023.Based on supervisory findings of contravention of statutory provisions and related correspondence, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed for contravention of provisions of the Banking Regulation Act.
Source link
