Case Brief
RBI imposed a monetary penalty of Rs 79.00 lakh on Apna Sahakari Bank Ltd., Mumbai by order dated September 23, 2021. The penalty was for non-compliance with RBI directions on Income Recognition, Asset Classification, Provisioning and other related matters (IRAC norms), Interest Rate on Deposits, and Maintenance of Deposit Accounts. RBI’s inspection found issues in NPA classification, interest payment on deposits lying in current accounts of deceased individual depositors or sole proprietorship concerns while settling claims, and levying penal charges in savings bank accounts for non-maintenance of minimum balances. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 79.0 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra