The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh on the Kuppam Co-operative Town Bank Ltd., Kuppam, Chittoor District., Andhra Pradesh.
The UCB was found guilty of contravention of certain provisions of the directions issued by RBI contained in the Master Circular on Income Recognition, Asset Classification, Provisioning and other related Matters – UCB’s dated July 01, 2015 and Master Circular on Board of Directors – UCBs dated July 01, 2015.
This penalty has been imposed in exercise of powers vested in RBI and the 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.
