Case Brief
The Reserve Bank of India imposed a monetary penalty on Samarth Sahakari Bank Ltd., Solapur (Maharashtra) for contravention of RBI directions issued to Urban Cooperative Banks on Income Recognition and Asset Classification (IRAC). RBI said an inspection based on the bank's financial position as of March 31, 2020 found that certain accounts were not classified according to IRAC norms and provisions were not made as stipulated. After issuing a show-cause notice and considering the bank's replies and oral submissions at a personal hearing, RBI concluded that the non-compliance was substantiated and warranted the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.50 L
- Entity Type
- Co-operative bank
- Location
- Solapur, Maharashtra