Case Brief
By an order dated November 08, 2021, RBI imposed a monetary penalty of ₹5.00 lakh on The Nakodar Hindu Urban Co-operative Bank Ltd., Nakodar, Punjab for non-compliance with RBI directions in the Master Circular on Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs. RBI said the bank failed to identify NPAs, wrongly classified assets, and made inadequate provisions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI considered the bank's reply and oral submissions and found the charges substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Nakodar, Punjab