Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Kodungallur Town Co-operative Bank Ltd., Kerala after a statutory inspection and follow-up supervisory process. RBI found that the bank had not complied with directions relating to management of advances, income recognition/asset classification/provisioning, and interest rate on deposits. The sustained violations included failure to classify certain loan accounts as non-performing assets and opening savings deposit accounts for ineligible entities. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.