Case Brief
What Happened
By an order dated March 04, 2022, RBI imposed a monetary penalty of ₹12.00 lakh on The Agrasen Co-operative Urban Bank Ltd., Hyderabad, Telangana. The penalty was imposed for non-adherence / violation of RBI directions on income recognition, asset classification, provisioning, and exposure norms / statutory / other restrictions applicable to UCBs. RBI said the action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a snap scrutiny and statutory inspection found non-compliance. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charges were substantiated.