RBI imposes penalty on bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 500,000 on the Postal and RMS employees Cooperative Bank Ltd at Ambala Cantt, Haryana, for violation of RBI’s directives.

The bank violated the provisions of the Banking Regulation Act, 1949 (as applicable to Cooperative Societies)/directives issued by the RBI. It opened a branch in New Delhi without obtaining an authorisation/license under Section 23 of the Act, according to RBI, Chandigarh, deputy general manager Devender Singh.