The Hindu : Business : RBI directive to banks on BIS code

Online edition of India's National Newspaper
Tuesday, Jun 13, 2006

Business

Business

RBI directive to banks on BIS code

Canara Bank fined for defaults

MUMBAI: The Reserve Bank of India (RBI) has advised banks' boards to consider incorporating in their loan policies the National Building Code (NBC) of India 2005, formulated by the Bureau of Indian Standards (BIS) in view of the importance of safety of buildings, especially against natural disasters.

The RBI has imposed a monetary penalty of Rs. 5 lakh on Canara Bank for its defaults in respect of reckoning of external liabilities under inter-branch account for computation of its demand and time liabilities for purposes of maintaining the cash reserve ratio and statutory liquidity ratio.

Further, when the bank was advised to submit revised Form A and Form VIII returns for the relevant period, the bank was unable to compile the revised returns on grounds of absence of date. On careful examination of the bank's submissions, the RBI has come to the conclusion that the aforesaid violation was substantiated and accordingly the penalty was imposed.

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