Case Brief
The Reserve Bank of India imposed a monetary penalty on The Citizens Urban Co-operative Bank Ltd., Jalandhar, Punjab, for failing to comply with certain RBI directions contained in the Master Circular on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’. An inspection based on the bank’s financial position as of March 31, 2019 found non-identification of NPAs, wrong classification of assets, and inadequate provisions. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the violations were substantiated and warranted a penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 7.00 L
- Entity Type
- Co-operative bank
- Location
- Jalandhar, Punjab