Case Brief
What Happened
RBI imposed a monetary penalty of ₹25 lakh on The Mehsana Urban Co-operative Bank Limited, Gujarat, after a statutory inspection and subsequent show-cause proceedings. The bank was found to have breached RBI directions on income recognition, asset classification, provisioning and related matters for UCBs by not classifying credit facilities of certain borrowers as non-performing assets. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.