Moneycontrol PRO
UPCOMING EVENT:Attend Traders Carnival Live. 3 days 12 sessions at Rs.1599/-, exclusive for Moneycontrol Pro subscribers. Register now!

RBI imposes monetary penalty on Apna Sahakari Bank

RBI issued a notice to the bank advising it to show cause why penalty should not be imposed for contravention of aforesaid directions.

September 24, 2021 / 06:13 PM IST
Representative image.

Representative image.

The Reserve Bank of India on September 24 imposed a monetary penalty of Rs 79 lakh on Mumbai-based Apna Sahakari Bank Ltd. over non-complaince with RBI's directions on ‘Income Recognition, Asset Classification, Provisioning and other related matters (IRAC norms)’, ‘Interest Rate on Deposits’ and ‘Maintenance of Deposit Accounts’, the central bank said in a release.

The central bank had conducted a statutory inspection with reference to the bank's financial position as on March 31, 2019. The inspection report revealed the bank had not complied with the directions issued by RBI on NPA classification, payment of interest on deposits lying in current accounts of deceased individual depositors or sole proprietorship concerns while settling the claims and levying of penal charges in savings bank accounts for non-maintenance of minimum balances, the central bank said in a release.

RBI issued a notice to the bank advising it to show cause why penalty should not be imposed for contravention of aforesaid directions.

Upon considering the bank's reply to the notice, RBI came to the conclusion that the charges over non-compliance with RBI's direction were substantiated and warranted imposition of monetary penalty, the central bank said.
Moneycontrol News
first published: Sep 24, 2021 06:13 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark