Reserve Bank of India imposes monetary penalty on Babaji Date Mahila Sahakari Bank Limited, Yavatmal

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra. RBI said the bank had contravened or failed to comply with directions issued to urban cooperative banks on Income Recognition and Asset Classification (IRAC), Know Your Customer (KYC), and Frauds - Classification and Reporting, based on inspection findings for the financial positions as on March 31, 2018 and March 31, 2019. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after the bank's replies were considered and the charge of non-compliance was found substantiated.