Vikas Souharda Co-operative Bank Limited

RBI imposed a monetary penalty for non-compliance with certain directions on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs’. After statutory inspection and consideration of the bank’s reply and oral submissions, RBI sustained the charge that the bank had failed to classify certain loan accounts as NPAs. 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 ensure stronger compliance with RBI asset classification and provisioning norms going forward. The order does not itself impose an operating restriction, but it signals supervisory concern and may be followed by further action if deficiencies persist.