Case Brief
What Happened
By order dated May 27, 2020, RBI imposed a monetary penalty of Rs 45 lakh on TJSB Sahakari Bank Limited. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI’s inspection (with reference to the bank’s financial position as on March 31, 2018) found non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms. RBI issued a show-cause notice, considered the bank’s reply and submissions, and concluded that the charge was established.