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Dhanlaxmi Bank stock gains over 3% despite RBI monetary penalty of Rs27 lakh over non-compliance

RBI has mentioned that this action is based on the deficiencies in regulatory compliance.

August 24, 2021 3:27 IST | India Infoline News Service
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs27 lakh on Dhanlaxmi Bank for non-compliance with certain provisions issued by RBI on crediting eligible amounts to the Depositor Education and Awareness Fund.

In its regulatory filing today, Dhanlaxmi Bank said that RBI has mentioned that 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 the customers.

On Monday, RBI highlighted that the Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI concerning its financial position as on March 31, 2020, and the examination of the Risk Assessment Report and Inspection Report about the same, revealed, inter-alia, contravention of above-mentioned provisions of the Act read with the scheme. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the provisions of the Act read with the scheme, as stated therein.

"After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of aforesaid provisions of the Act read with the scheme was substantiated and warranted imposition of monetary penalty on the bank," RBI said.

At around 3.25 pm, Dhanlaxmi Bank was trading at Rs14.65 per piece up 3.2% on Sensex.

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