Case Brief
RBI imposed, by order dated June 17, 2021, a monetary penalty of ₹10 lakh on The Manjeri Co-operative (Urban) Bank Ltd., Manjeri, Malappuram District, Kerala. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS) after a statutory inspection found contravention/non-compliance with RBI's Master Circular on Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs and the circular on Management of Advances – UCBs, both dated July 1, 2015. RBI issued a show-cause notice, reviewed the bank's written reply and oral submissions, and concluded that the non-compliance was substantiated. The press release clarifies that the action is based on regulatory compliance deficiencies and is not intended to pronounce upon the validity of any customer transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Co-operative bank
- Location