J&K Bank penalized with Rs 2.5 Cr. over non compliance

Date:

Share post:

JAMMU, June 24: The Reserve Bank of India has imposed a hefty penalty of Rupees 2.5 crore on Jammu and Kashmir Bank over its alleged non-compliance on certain directions and regulations.

The officials, say the penalty relates to the bank’s failure to adhere to RBI’s guidelines on the central repository of large common exposures across banks, loans, and advances, as well as statutory and other restrictions. “The bank did not ensure the timely implementation and strengthening of SWIFT-related operational controls”, said the official.

 “The non-compliance thing was revealed after conducting an inspection on March 31, 2021”, said the official adding the bank was found providing extended term loans to a corporation without conducting proper due diligence verification even as it did not ensure that the repayment or servicing of these loans came from budgetary resources.

“The bank also created financial/non-financial messages in SWIFT without ensuring that the underlying transactions were accurately reflected in the Core Banking System (CBS)”, said the official.

The RBI, as per the official, has also in the meantime penalized Axis Bank of rupees 30 lakhs and Bank of Maharashtra of rupees 1.45 Crore for non-adherence to certain banking norms.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

Lt Governor chairs SKIMS Governing Body Meet

Calls for systemic interventions for quality care, people-centred approach for accessible, equitable & efficient delivery of healthcare services SRINAGAR,...

DC finalizes arrangements for smooth conduct of JKSSB Exam

KATHUA, June 13: Deputy Commissioner Kathua Dr. Rakesh Minhas finalized the preparations for the upcoming JKSSB examination in...

CRPF jawan killed, six security personnel injured in two encounters with terrorists in J-K

JAMMU, Jun 12: A CRPF jawan was killed and six security personnel were injured in two overnight encounters...

Rakesh Minhas reviews Shri Amarnath Ji Yatra arrangements

24x7 Lakhanpur Yatri Facilitation Centre, 12 RFID counters, 36 lodgment centers to come up  for Amaranth Yatris KATHUA, June...