RBI imposes Rs 49 lakh penalty on Bassein Catholic Co-op Bank, Vasai
MUMBAI: Reserve Bank of India on Monday said it has imposed a penalty of Rs 49 lakh on Bassein Catholic Co-operative Bank, Vasai for non-compliance with prudential norms.
In a statement, the RBI said the penalty has been imposed for non-compliance with the directions issued by it on 'Income Recognition, Asset Classification, Provisioning and Other Related Matters' (IRAC norms).
The central bank had conducted the statutory inspection of Bassein Catholic Co-operative Bank with reference to its financial position as on March 31, 2019.
According to the statement, in non-compliance with IRAC norms, the bank in certain instances had upgraded/regularised loan accounts of borrowers without recovering overdue amounts and had not classified existing non-performing loan accounts of borrowers as NPAs on restructuring.
A show-cause notice was issued to the lender. "After considering the bank's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the charge of non-compliance. Was substantiated and warranted imposition of monetary penalty," it said.
In a separate release, the RBI said it has imposed a penalty of Rs 50,000 on Jila Sahakari Kendriya Bank Maryadit, Morena (Madhya Pradesh), for contravention of its directions related to Know Your Customer (KYC).
The central bank, however, said the penalties are based on a deficiency in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.