Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Chennai Central Co-operative Bank Ltd., Chennai, Tamil Nadu by order dated February 17, 2022. The penalty was imposed for non-adherence / violation of RBI directions contained in the June 22, 1996 circular on Income Recognition, Assets Classification, Provisioning and Other Related Matters. RBI said the bank's inspection report for its financial position as on March 31, 2020 revealed non-compliance; after a show-cause notice, reply, and oral submissions, the charge was found substantiated. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Chennai, Tamil Nadu