Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1,50,000 on Odisha Gramya Bank by order dated April 09, 2024. The penalty was levied after a statutory inspection by NABARD and a show-cause process, with RBI concluding that the bank had not complied with its directions on strengthening prudential norms and on RRB income recognition, asset classification and provisioning norms for non-performing assets. RBI sustained the charge that certain loan accounts were not classified as NPAs, causing divergence in asset classification. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.