By IANS,
Chandigarh: The Reserve Bank of India (RBI) has imposed a penalty of Rs.5 lakh on the Postal and RMS (railway mail service) Employees Cooperative Bank at Ambala Cantt in Haryana for opening a branch in New Delhi without a license.
RBI Deputy General Manager Devender Singh said the bank had opened a branch in New Delhi this year without obtaining an authorization and license under Section-23 of the Banking Regulation Act, 1949.
Singh said RBI had issued a show cause notice to the bank and in response, the bank had submitted a written explanation.
Based on the reply, RBI found the violations warranted an imposition of penalty.
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