Mizoram Rural Bank

By order dated May 10, 2023, RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. The penalty was for contravention/non-adherence with RBI directions on 'Strengthening of Prudential Norms - Provisioning, Asset Classification and Exposure Limit' and 'Regional Rural Banks - Income Recognition, Asset Classification and Provisioning Norms - Non-Performing Assets (NPAs)'. Based on NABARD's statutory inspection as of March 31, 2022, RBI found that the bank had failed to classify certain loan accounts as non-performing in line with IRAC norms, and concluded the non-compliance was substantiated after considering the bank's reply, additional submissions, and oral hearing.

Mizoram Rural Bank must absorb the penalty and ensure stricter compliance with RBI prudential and asset classification norms going forward. The action does not by itself restrict customer operations, but it signals heightened regulatory scrutiny over loan classification and NPA recognition practices.