RBI imposes monetary penalty on The Ajara Urban Co-operative Bank Ltd., Ajara, Kolhapur

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Ajara Urban Co-operative Bank Ltd., Ajara, Kolhapur, by order dated June 23, 2021. RBI said the bank had contravened its direction on ‘Maintenance of Deposit Accounts’ because the annual review of inoperative accounts had not been done, as revealed in inspection findings for the bank’s financial position as on March 31, 2019. RBI issued a notice, considered the bank’s reply and oral submissions, and then concluded that the charge was substantiated and that monetary penalty was warranted under the Banking Regulation Act, 1949.