SBPP Co-operative Bank Limited, Killa Pardi (Dist. Valsad)

After a statutory inspection with reference to the bank’s financial position as on March 31, 2022, RBI issued a show-cause notice based on supervisory findings of non-compliance with its directions on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs’. Following the bank’s reply, oral submissions, and additional submissions, RBI sustained the charge that the bank had failed to classify certain borrowers’ loan accounts as non-performing assets and imposed a penalty 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 address the compliance weakness identified by RBI, particularly in asset classification and NPA recognition. The order does not itself suspend operations, but it signals supervisory concerns and may be followed by further regulatory action if deficiencies persist.