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Tripura Gramin Bank

BankAgartala, Tripura

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 2.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

15 May 2023

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on Tripura Gramin Bank, Agartala, Tripura, by order dated May 10, 2023. The penalty was for contravention of RBI directions on prudential norms relating to provisioning, asset classification and exposure limits, as well as RBI norms on income recognition, asset classification and provisioning for non-performing assets. NABARD’s statutory inspection found that the bank had failed to classify certain loan accounts as non-performing in accordance with IRAC norms. After a notice, the bank’s reply, additional submissions and oral hearing, RBI concluded that the charge of non-compliance was substantiated and warranted penalty under the Banking Regulation Act, 1949.

Why RBI Acted

Reporting & disclosureLending norms

RBI imposed a monetary penalty on Tripura Gramin Bank under Section 47A(1)(c) read with Section 46(4)(i) and Section 51(1) of the Banking Regulation Act, 1949, for contravention/non-adherence with its 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)’. The inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2022 found that the bank had failed to classify certain loan accounts as non-performing in accordance with IRAC norms.

Operating Impact

Tripura Gramin Bank must absorb the monetary penalty; the release does not impose a new operational restriction. The underlying compliance expectations remain relevant for the bank’s loan classification, provisioning and prudential reporting practices, but no direct customer-facing restriction is stated.

Regulatory Basis

  • Section 47A(1)(c)
  • Section 46(4)(i)
  • Section 51(1)

Action Facts

Primary Impact
Fine: Rs 2.00 L
Order Date
10 May 2023
Effective From
10 May 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Bank