RBI imposes monetary penalty on SBPP Co-operative Bank Limited, Killa Pardi (Dist. Valsad)

Case Brief

RBI, by order dated December 13, 2024, imposed a monetary penalty of ₹15.00 lakh on SBPP Co-operative Bank Limited, Killa Pardi (Dist. Valsad). The penalty was imposed for non-compliance with RBI’s directions on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs’. RBI’s inspection, conducted with reference to the bank’s financial position as on March 31, 2022, found that the bank had failed to classify certain borrowers’ loan accounts as non-performing assets. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.