RBI imposes monetary penalty on Garha Co-operative Bank Limited, Guna (M.P.)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Garha Co-operative Bank Limited, Guna (M.P.) by order dated August 04, 2022. The penalty was imposed because an inspection found contravention of and non-compliance with RBI directions issued to urban cooperative banks on Income Recognition and Asset Classification (IRAC). RBI issued a show-cause notice, reviewed the bank’s reply and oral submissions, and held that the charge was substantiated under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.