Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹49.00 lakh on Bassein Catholic Co-operative Bank Ltd., Vasai for non-compliance with RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters (IRAC norms). RBI’s inspection found that the bank had, in some cases, upgraded or regularised loan accounts without recovering overdue amounts and had not classified existing non-performing loan accounts as NPAs when they were restructured. After a show-cause process and consideration of the bank’s submissions, RBI held that the contraventions were substantiated and warranted penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 49.0 L
- Entity Type
- Co-operative bank
- Location
- Vasai