Mansing Co-operative Bank Limited, Dudhondi

RBI imposed a monetary penalty after its statutory inspection found that the bank had not complied with directions on Income Recognition, Asset Classification, Provisioning and other related matters applicable to urban co-operative banks. The sustained charge was that certain loan accounts were not classified as non-performing assets and provisions were not made as required under the RBI norms. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and continue ensuring compliance with RBI’s income recognition, asset classification and provisioning norms. The action does not by itself restrict operations, but it signals heightened supervisory scrutiny and potential for further regulatory action if non-compliance persists.