Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Kuppam Co-operative Town Bank Ltd., Kuppam, Chittoor District, Andhra Pradesh. The penalty was based on inspection findings that the bank had contravened or failed to comply with RBI directions contained in the Master Circular on Income Recognition, Asset Classification, Provisioning and other related Matters – UCB’s and the Master Circular on Board of Directors – UCBs. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the violations were substantiated and warranted penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Kuppam, Andhra Pradesh