RBI imposes monetary penalty on Bharat Co-operative Bank (Mumbai) Limited

Case Brief

RBI imposed a monetary penalty of ₹50.00 lakh on Bharat Co-operative Bank (Mumbai) Limited, Maharashtra, for non-compliance with its directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters (IRAC norms). Following a statutory inspection, RBI found that the bank had not classified certain accounts as non-performing assets in accordance with the applicable norms. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI considered the bank’s reply and submissions and found the contravention substantiated.