Current Affairs

Nainital Bank fined by RBI for Rs. 1 crore

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 crore on Nainital Bank for its failure to fully automate the non-performing asset (NPA) identification process, despite specific directions issued in this regard.
Nainital Bank fined by RBI for Rs. 1 crore

Details:

  • The penalty was imposed under the provisions of the Banking Regulation Act, 1949.
  • This action is based on the 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.

About the Banking Regulation Act, 1949:

  • It is a legislation in India that regulates all banking firms in India.
  • The Act gives the Reserve Bank of India (RBI) the power to:
  • License banks
  • Have regulation over shareholding and voting rights of shareholders supervise the appointment of the boards and management
  • Regulate the operations of banks
  • Lay down instructions for audits
  • Control moratorium, mergers and liquidation
  • Issue directives in the interests of public good and on banking policy
  • Impose penalties

About Nainital Bank:

  • It was founded in 1922 and is headquartered in Nainital, Uttarakhand, India.
  • Its MD & CEO is Dinesh Pant and its parent bank is Bank of Baroda.
  • It is a scheduled commercial bank.
  • The bank has over 139 branches in Rajasthan, Delhi and Haryana.
  • It has expanded to Uttar Pradesh and Uttarakhand.

Question:

Q. The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 crore on which scheduled commercial bank for its failure to fully automate the non-performing asset (NPA) identification process, despite specific directions issued in this regard?
a. Manali Bank
b. Nainital Bank
c. Mount Abu Bank
d. Bank of Srinagar
Nainital Bank fined by RBI for Rs. 1 crore Nainital Bank fined by RBI for Rs. 1 crore Reviewed by Neha Verma on May 16, 2019 Rating: 5

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