Case Brief
The Reserve Bank of India imposed a monetary penalty on Kodungallur Town Co-operative Bank Ltd., Kerala after a statutory inspection and follow-up supervisory process. RBI found that the bank had not complied with directions relating to management of advances, income recognition/asset classification/provisioning, and interest rate on deposits. The sustained violations included failure to classify certain loan accounts as non-performing assets and opening savings deposit accounts for ineligible entities. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Kodungallur, Kerala