Reserve Bank of India imposes monetary penalty on Saraswat Co-operative Bank Ltd

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 30 lakh on Saraswat Co-operative Bank Ltd. by order dated February 20, 2020. The penalty was imposed for non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms, based on deficiencies found during statutory inspection for the bank’s financial position as on March 31, 2018. RBI issued a show-cause notice, reviewed the bank’s reply and oral submissions, and concluded that the violation warranted penalty under the Banking Regulation Act, 1949.