Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹4.00 lakh on Annasaheb Magar Sahakari Bank Ltd., Pune, Maharashtra. The penalty was issued for non-compliance with RBI directions relating to KYC, maintenance of deposit accounts for urban co-operative banks, and income recognition, asset classification, and provisioning. RBI’s inspection found that the bank did not periodically review the risk categorization of accounts, levied fixed penal charges for shortfall in minimum balance instead of proportionate charges, and failed to adhere to prudential norms on income recognition, asset classification, and provisioning. RBI concluded that the contraventions were substantiated after considering the bank’s reply and hearing.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location
- Pune, Maharashtra