Reserve Bank of India imposes monetary penalty on Dombivli Nagari Sahakari Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹50 lakh on Dombivli Nagari Sahakari Bank Limited by order dated January 29, 2020. The penalty was levied because the bank did not comply with RBI directions on Income Recognition and Asset Classification (IRAC) norms, as revealed during a statutory inspection conducted with reference to the bank's financial position as on March 31, 2018. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then concluded that the violation warranted penalty under the Banking Regulation Act, 1949.