RBl imposes monetary penalty on the Parwanoo Urban Co-operative Bank Limited, Parwanoo

Case Brief

The Reserve Bank of India imposed a penalty of Rs 6 lakh on Parwanoo Urban Co-operative Bank Limited, Parwanoo, by order dated June 18, 2021. RBI said the bank failed to comply with certain directions in its master circulars on income recognition, asset classification, provisioning and other related matters, and on exposure norms and statutory/other restrictions for UCBs. The inspection report found non-identification of NPAs, wrong classification of assets, inadequate provisioning, and non-adherence to exposure norms for individual and group borrowers. After a notice, the bank's reply and oral submissions were considered, and RBI concluded the violations were substantiated and warranted penalty.