The Reserve Bank of India has imposed a monetary penalty of Rs 2 lakh on the Hyderabad District Co-Operative Central Bank Ltd., Hyderabad, Telangana.
The co-op bank was faulted for non-adherence of certain directions issued by RBI contained in the Circular on ‘Income Recognition, Asset Classification and Provisioning- Recognition of Loan Impairment by State / Central Co-operative Banks dated December 30, 2002 and for non-transfer of the eligible funds to Depositor Education and Awareness Fund.
This penalty has been imposed in exercise of powers vested in RBI and taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarifies RBI.
