RBI imposes Monetary Penalty on Tripura Gramin Bank:

RBI imposes Monetary Penalty on Tripura Gramin Bank The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.2.00 lakh on Tripura Gramin Bank, Agartala, Tripura (the bank) for contravention of/non-adherence with the directions issued by RBI on ‘Strengthening of Prudential Norms - Provisioning, Asset Classification and Exposure Limit’ and ‘Regional Rural Banks - Income Recognition, Asset Classification and Provisioning Norms - Non-Performing Assets (NPAs)’, by an order dated May 10, 2023. The penalty has been levied in accordance with the authority granted to RBI by Sections 47A(1)(c), 46(4)(i), and 51(1) of the Banking Regulation Act of 1949, taking into consideration the bank's failure to follow the aforementioned instructions from 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. NABARD carried out the required bank inspection with relation to its financial standing as of March 31, 2022, and an analysis of the Inspection Report showed, among other things, that the bank had neglected to designate some loan accounts as non-performing in compliance with IRAC standards. Based on this, a notice was sent to the bank asking it to provide justification for not receiving a fine for failing to follow the instructions. After taking into account the bank's response to the notice, further submissions, and oral arguments made by the bank during the Personal Hearing, the RBI determined that the aforementioned charge of failing to follow RBI instructions was proved and required the imposition of a financial penalty.