Reserve Bank of India imposes monetary penalty on The Agrasen Co-operative Urban Bank Ltd., Hyderabad, Telangana - आरबीआय - Reserve Bank of India
Reserve Bank of India imposes monetary penalty on The Agrasen Co-operative Urban Bank Ltd., Hyderabad, Telangana
The Reserve Bank of India (RBI) has imposed, by an order dated March 04, 2022, a monetary penalty of ₹12.00 lakh (Rupees twelve lakh only) on The Agrasen Co-operative Urban Bank Ltd., Hyderabad, Telangana (the bank) for non-adherence / violation of directions issued on ‘Income Recognition, Asset Classification, Provisioning’ and ‘Exposure norms/ Statutory / Other Restrictions-UCBs.’ This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by 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. Background The Scrutiny report of the bank based on a snap scrutiny conducted on February 12, 2019 and the inspection report based on the statutory inspection with reference to its financial position as on March 31, 2020, revealed inter alia, violation/non-compliance with directions issued on ‘Income Recognition, Asset Classification, Provisioning and Other related Matter-UCBs’ and ‘Exposure Norms and Statutory / Other Restrictions – UCBs’. Based on the same a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering the bank’s reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty. (Yogesh Dayal) Press Release: 2021-2022/1820 |