Reserve Bank of India imposes monetary penalty on The Tadpatri Cooperative Town Bank Ltd., Anantapur District, Andhra Pradesh - ஆர்பிஐ - Reserve Bank of India
Reserve Bank of India imposes monetary penalty on The Tadpatri Cooperative Town Bank Ltd., Anantapur District, Andhra Pradesh
The Reserve Bank of India (RBI) has imposed, by an order dated March 01, 2022, a monetary penalty of ₹2.00 lakh (Rupees two lakh only) on The Tadpatri Cooperative Town Bank Ltd., Anantapur District, Andhra Pradesh (the bank) for non-adherence / violation of directions issued on i) prohibition of loans and advances to Directors and their relatives and the firms / concerns in which they were interested ii) Income Recognition, Asset Classification, Provisioning and Other related Matter-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 inspection reports of the bank based on its financial position as on March 31, 2019 and March 31, 2020, revealed inter alia, violation / non-compliance with directions issued on prohibition of loans and advances to Directors and their relatives and the firms / concerns in which they were interested and Income Recognition, Asset Classification and Provisioning Norms. 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: 2021-2022/1823 |