The Reserve Bank of India (RBI) has, by an order dated July 15, 2021, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on Tripura State Co-operative Bank Ltd., Agartala (the bank) for non-compliance with regulatory directions issued by RBI contained in its Directive on “Membership of Credit Information Companies (CICs)”. This penalty has been imposed in exercise of powers vested in RBI under clause (iii) of sub-section (1) of section 25 of the Credit Information Companies (Regulation) Act, 2005.

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 statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence revealed non-compliance with, inter alia, the aforesaid directions issued by 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 for contravention of the statutory directions, as stated therein. After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charge was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the aforesaid direction.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/551