Reserve Bank of India imposes monetary penalty on The Yashwant Cooperative Bank Limited, Phaltan

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Yashwant Cooperative Bank Limited, Phaltan by order dated March 22, 2022. The bank was found to have failed to comply with RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters applicable to UCBs, based on deficiencies noticed in an inspection report for the financial position as on March 31, 2019. RBI issued a show-cause notice, considered the bank’s written reply, and concluded that the charges of non-compliance were substantiated, justifying penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.