Owing to violation of certain norms including, those related to NPA classification, the RBI on Wednesday said it has imposed a penalty of Rs 15 lakh on The Baghat Urban Co-operative Bank Limited, Solan.
In another statement,for non-compliance with certain directions issued by the central bank, the RBI said it has imposed a penalty of Rs 1 lakh on Delhi Nagrik Sehkari Bank Limited, New Delhi.
The RBI said inspection report of The Baghat Urban Co-operative Bank, based on its financial position as on March 31, 2019, revealed non-adherence with/violation of directions, including non-identification of NPAs, wrong classification of assets, inadequate provisions made due to wrong classification of assets and non-adherence to exposure norms for housing, real estate and commercial real estate (CRE).
A notice was issued to the bank to show cause as to why a penalty should not be imposed for violation of the said directions.
The Reserve Bank of India (RBI) said after considering the bank's reply and oral submissions, it came to the conclusion that the charges were substantiated and warranted imposition of monetary penalty.
The inspection report of Delhi Nagrik Sehkari Bank, based on its financial position as on March 31, 2019, revealed non-adherence with prudential inter-bank (gross) exposure limit, RBI said.
(With PTI Inputs)
For both cases, the RBI said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers. PTI NKD ABM
ABM
