Stay on penalty of 30 lakhs imposed on District Cooperative Bank

Stay on penalty of 30 lakhs imposed on District Cooperative Bank

 

Gwalior The High Court has imposed an stay on the recovery of the penalty of 30 lakhs imposed by the Reserve Bank of India on the District Cooperative Central Bank. The court has also directed not to take strict action against the bank.

Justice Sheel Nagu, while hearing the petition of District Co-operative Central Bank, gave this direction. The cooperative bank had challenged the penalty of Rs 30 lakh imposed by the Reserve Bank of India by saying that the Reserve Bank had dismissed its application without waiving its application without waiving any reason. The Reserve Bank had imposed a penalty of Rs 30 lakh on non-adherence to the Banking Regulation Act in the year 2017-18 on co-operative bank Gwalior.

Against this order, the bank had asked the Reserve Bank to wave off the fine. The bank said that the bank was defaulter due to losses, due to which it would be exempted. The Reserve Bank had rejected the bank’s application without assigning any reason. On this, the bank submitted a petition in the High Court.

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