RBI imposes monetary penalty on Maharashtra Nagari Sahakari Bank Limited, Latur, Maharashtra

Case Brief

By an order dated August 08, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on Maharashtra Nagari Sahakari Bank Limited, Latur, Maharashtra. The action was taken for non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms and for contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. RBI said its inspection found that certain loan accounts were not classified as NPA, resulting in divergence in asset classification, and that the bank had not transferred the eligible amount to the Depositors Education and Awareness Fund within the prescribed time. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.