(1) While imposing pecuniary penalty or punishment pursuant to Sections 99 and 100, the Bank shall have to follow the following procedures:-
(a) Prior to imposing pecuniary penalty or punishment, the Bank shall issue a written notice to the accused institutions or persons stipulating the following
matters to submit its reply within fifteen days, on the proposed fine or punishment:-
(1) Nature of the offense,
(2) Amount of fine or proposed punishment that may be imposed on the basis of nature of offence, and
(3) Summary of the facts related to the offence.
(b) The institution or person accused pursuant to Clause
(a) should submit written replies within fifteen days accepting or denying the charges.
(c) In case the denial of the charge by the accused institution or person is found to be satisfactory, the Bank may change, limit or dismiss such charge.
(d) In case the accused institution or person accept the charge or does not give satisfactory replies, the Bank shall impose such fine or punishment.
(e) The Bank may issue order to deduct the amount of fine imposed pursuant to Clause (d) from the accounts of the concerned commercial bank or financial institution maintained at the Bank.
(2) The cash fine to be recovered by the Bank pursuant to Clause (e) of Sub-Section (1) shall be deposited in the general reserve fund.
(3) Notwithstanding anything contained in Sub-section (1), there is no need to follow such procedure while imposing punishment under Clauses (a), (b), (c) or (d) of Sub-section (1) and Clauses (a) and (b) of Sub-section (2) of Section 100.