Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.50 lakh on The Nizamabad District Co-operative Central Bank Ltd., Nizamabad, Telangana by order dated November 17, 2021. The penalty was levied for non-adherence / violation of directions contained in RBI’s Master Circular on Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs, and Section 9 read with Section 56 of the Banking Regulation Act, 1949 (AACS). RBI said the action followed inspection findings based on the bank’s financial position as on March 31, 2019, which revealed violations / non-compliance. After a show-cause notice, the bank’s reply, and oral submissions, RBI concluded the charges were substantiated and imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56.
Action Snapshot
- Primary Impact
- Fine: Rs 2.50 L
- Entity Type
- Co-operative bank
- Location