RBI imposes monetary penalty on The Tiruchirappalli District Central Cooperative Bank Ltd., Tiruchirappalli, Tamil Nadu

Case Brief

RBI imposed a monetary penalty of ₹1.00 lakh on The Tiruchirappalli District Central Cooperative Bank Ltd., Tiruchirappalli, Tamil Nadu, for non-adherence to directions issued under Income Recognition, Asset Classification, Provisioning and Other Related Matters. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS). An inspection based on the bank's financial position as on March 31, 2020, revealed several instances of incorrect classification of loan accounts. After issuing a show-cause notice and considering the bank's reply and oral submissions, RBI held the charge substantiated and imposed the penalty.