Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Nov 2022
Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on The Tiruchirappalli District Central Cooperative Bank Ltd., Tiruchirappalli, Tamil Nadu, for non-adherence to directions issued under Income Recognition, Asset Classification, Provisioning and Other Related Matters. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS). An inspection based on the bank's financial position as on March 31, 2020, revealed several instances of incorrect classification of loan accounts. After issuing a show-cause notice and considering the bank's reply and oral submissions, RBI held the charge substantiated and imposed the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS), after an inspection of the bank's financial position as on March 31, 2020 found several instances of incorrect classification of loan accounts. The bank was issued a show-cause notice, and after considering its reply and oral submissions, RBI concluded that non-compliance with RBI's directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters was substantiated.
Operating Impact
The bank must absorb the monetary penalty; the release does not announce any operating restriction, suspension, or cancellation. The action is a compliance penalty and does not itself alter the bank's ability to accept business or serve customers.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 24 Nov 2022
- Effective From
- 24 Nov 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank