New Delhi, June 22: For launching a division in New Delhi without a license, the country’s central banking institution (RBI) has imposed a fine of Rs 5 lakh on the Postal and RMS (railway mail service) Employees Cooperative Bank at Ambala Cantt in Haryana.
Mr. Devender Singh, RBI Deputy General Manager stated that the banking institution had opened an arm in New Delhi in 2010 without getting an approval and license under Section-23 of the Banking Regulation Act, 1949.
Mr. Singh also said that the central bank had issued a show cause notice to the bank and in return, the bank had forwarded a written explanation.
Based on the reply, RBI found the violations warranted an imposition of penalty.
–Agencies–