Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹50.00 lakh on Bassein Catholic Co-operative Bank Ltd., Vasai, Maharashtra for non-compliance with RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters (IRAC norms). RBI’s statutory inspection found that the bank had not classified certain loan accounts as non-performing assets in accordance with the norms. After considering the bank’s reply, additional submissions and oral submissions, RBI held that the violation was substantiated and levied the penalty under the Banking Regulation Act, 1949.