RBI imposes monetary penalty on The Akola Urban Co-operative Bank Ltd., Akola, Maharashtra

Case Brief

By an order dated August 10, 2022, RBI imposed a monetary penalty of Rs 15.00 lakh on The Akola Urban Co-operative Bank Ltd., Akola, Maharashtra for non-compliance with RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters (IRAC norms). RBI said the violation was identified during its statutory inspection with reference to the bank's financial position as on March 31, 2020, and after examination of the Risk Assessment Report and related correspondence. Following a show-cause notice and review of the bank's reply, RBI concluded the charge was substantiated and warranted monetary penalty under the Banking Regulation Act, 1949.