Case Brief
What Happened
RBI imposed a monetary penalty of ₹56 lakh on The Nainital Bank Ltd., Uttarakhand by order dated October 28, 2021. The penalty was based on non-compliance with RBI directions relating to prudential norms on income recognition, asset classification and provisioning, disclosure of divergences in the Notes to Accounts, and fraud classification/reporting. RBI’s inspection found divergence in NPAs, failure to disclose material divergences, and failure to report frauds as required under the applicable circulars and the Banking Regulation Act, 1949.