RBI Imposes 49 lakh monetary Penalty on Co-operative Bank; Check Name Of bank

RBI Imposes 49 lakh monetary Penalty on Co-operative Bank; Check Name Of Bank The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 49.00 lakh (Rupees 49 lakh only) on Bassein Catholic Co-operative Bank Ltd., Vasai (the bank) for non-compliance with RBI's 'Income Recognition, Asset Classification, Provisioning, and Other Related Matters' (IRAC norms)' by an order dated June 02, 2022. RBI levied this Penalty in light of the Bassein Catholic Co-operative Bank's failure to follow RBI's instructions. This action is based on a lack of regulatory compliance and is not meant to be a judgment on the validity of any transaction or agreement between the bank and its clients. Background The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2019, the Inspection Report pertaining thereto and examination of all related correspondence revealed, inter alia, that in non-compliance with the aforesaid directions issued by RBI, the bank in certain instances (i) had upgraded/ regularised loan accounts of borrowers without recovering overdue amounts and (ii) had not classified existing non-performing loan accounts of borrowers as NPAs, on restructuring. 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 for contravention of the RBI directions, as stated therein. 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 conclusion that the charge of non compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.