RBI imposes monetary penalty on Wai Urban Co-operative Bank Ltd., Satara

Case Brief

The Reserve Bank of India imposed a monetary penalty on Wai Urban Co-operative Bank Ltd., Satara for non-compliance with its directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters (IRAC norms). RBI's inspection found that the bank had not classified certain loan accounts as non-performing assets in accordance with the norms. After a show-cause notice, the bank's written and oral submissions were considered, and RBI concluded that the violation was substantiated. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.