RBI imposes monetary penalty on Apna Sahakari Bank

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.