The Reserve Bank of India (RBI) has imposed monetary penalties on two urban cooperative banks for non-compliance with its directions on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.
According to separate RBI orders, the Mehsana Urban Co-operative Bank Ltd., Gujarat, has been fined Rs 25 lakh, while Parner Taluka Sainik Sahakari Bank Ltd., located in Parner, Maharashtra, has been fined Rs 1 lakh.
The central bank stated that the action was taken after it observed lapses in adherence to regulatory norms during supervisory inspections of these banks. The penalties were imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
RBI clarified that the penalties are based on regulatory compliance deficiencies and are not intended to question the validity of any transactions or agreements made by the banks with their customers.
