MM TAX CLUB

The Reserve Bank of India (RBI) has, by an order dated June 12, 2023, imposed a monetary penalty of ₹50.00 lakh (Rupees fifty lakh only) on Dombivli Nagari Sahakari Bank Limited, Dombivli (the bank) for non-compliance with directions issued by RBI on ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) and ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) - A Graded Approach’. This penalty has been imposed in exercise of powers conferred on RBI under section 47 A (1) (c) read with sections 46 (4) (i) and 56 of Banking Regulation Act, 1949 (BR Act).

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.

Background

The IT examination of the bank and scrutiny conducted by RBI in March 2022 with reference to a Cyber Security Incident revealed, inter alia, that the bank had failed to put in place certain mandated controls which led to the cyber security incident. 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 failure to comply with the directions issued by RBI, as stated therein.

After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid directions issued by RBI was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

The Reserve Bank of India (RBI) has, by an order dated June 12, 2023, imposed a monetary penalty of ₹65.00 lakh (Rupees sixty-five lakh only) on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad (the bank) for non-compliance with directions issued by RBI on ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs), ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) - A Graded Approach’ and ‘Internet Banking Facility for Customers of Cooperative Banks’. This penalty has been imposed in exercise of powers conferred on RBI under section 47 A (1) (c) read with sections 46 (4) (i) and 56 of Banking Regulation Act, 1949 (BR Act).

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.

Background

The IT examination of the bank by RBI and an Investigation Report conducted in reference to a Cyber Security Incident revealed inter alia, that the bank had failed to put in place certain mandated controls which led to the cyber security incident. 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 failure to comply with the directions issued by RBI, as stated therein.

After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid directions issued by RBI was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

CBIC vide Notification number No. 14/2023- CENTRAL TAX dated 19th June, 2023 its further extended due date for filing GSTR-1 for the month of April 2023 and May 2023 till 30th June 2023

Vide Notification number No. 15/2023- CENTRAL TAX dated 19th June, 2023 its further extended due date for filing GSTR-3B for the month of April 2023 and May 2023 till 30th June 2023

Vide Notification number No. 16/2023- CENTRAL TAX dated 19th June, 2023 its further extended due date for filing GSTR-7 for the month of April 2023 and May 2023 till 30th June 2023

Earlier due dates for these returns were extended vide Notification Number 11, 12 & 13 dated 24^th may 2023 due to violence in state of Manipur.

Extract of the current Notifications can be read as under;

            —In exercise of the powers conferred by sub-section (6) of section 39 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2023 – Central Tax, dated the 24th May, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 385(E), dated the 24th May, 2023, namely: —

(i) for the words, letter and figure ― month of April, 2023‖ the words, letter and figure ― months of April, 2023 and May, 2023‖ shall be substituted;

(ii) for the words, letters and figure ―thirty-first day of May, 2023‖, the words, letter and figure ―thirtieth day of

June, 2023‖ shall be substituted.

This notification shall be deemed to have come into force with effect from the 31st day of May, 2023.

The Reserve Bank of India (RBI) has imposed, by an order dated June 09, 2023, a monetary penalty of ₹6.00 lakh (Rupees Six lakh only) on The Urban Co-operative Bank Limited, Rourkela (the bank) for contravention of/ non-adherence with the directions issued by RBI on Know Your Customer (KYC) and Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on 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.

Background

The inspection report of the bank based on its financial position as on March 31, 2021, revealed, inter alia, that the bank failed to i) ensure appropriate Customer Due Diligence when it did not obtain necessary documents regarding nature and proof of business ii) adhere to instructions pertaining to customer identification when it allowed transactions in accounts without confirming local address of constituents iii) adhere to instructions pertaining to issue of cheque books. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank’s reply, oral submissions made during the personal hearing and additional submissions made by the bank after the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

Earlier CBIC vide Notification number No. 11/2023- Central Tax dated 24th May, 2023 was extended due date for filing GSTR-1 for the month of April 2023 till thirty-first day of May, 2023.

Now vide Notification number No. 14/2023- CENTRAL TAX dated 19th June, 2023 its further extended due date for filing GSTR-1 for the month of April 2023 and May 2023 till 30^th June 2023.

Extract of the notification can be read as under;

            In exercise of the powers conferred by the proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 83/2020 – Central Tax, dated the 10th November, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 699(E), dated the 10th November, 2020, namely: —

In the said notification, in the fourth proviso:-

(i) for the words, letter and figure ― tax period April, 2023‖ the words, letter and figure ― tax periods April 2023 and

May 2023‖ shall be substituted;

(ii) for the words, letters and figure ―thirty-first day of May, 2023‖, the words, letter and figure ―thirtieth day of

June, 2023‖ shall be substituted.

2. This notification shall be deemed to have come into force with effect from the 31st day of May, 2023.