Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 3 lakh on Indrayani Co-operative Bank Ltd., Pimpri, Maharashtra. The penalty was imposed after RBI's inspection found non-compliance with directions on income recognition, asset classification, provisioning, and failure to implement a system for periodic KYC updation of customers. RBI said the action was taken under the Banking Regulation Act, 1949, and did not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.