Mumbai (Maharashtra) [India]: The Reserve Bank of India (RBI) on Monday stated it has imposed a monetary fine of Rs 49 lakh on Bassein Catholic Co-operative Bank Ltd, Vasai for non-compliance with its instructions.

The RBI released an order in this regard on June 2, 2022. The reserve bank has actually imposed the charge for non-compliance with the directions issued by it on “Earnings Acknowledgment, Property Classification, Provisioning and also Other Relevant Issues’ (IRAC standards)”.
This fine has actually been imposed in workout of powers vested in RBI provided under section 47 A (1) (c) read with sections 46 (4) (i) as well as 56 of the Financial Guideline Act, 1949 (BR Act), taking into account the failing of the bank to comply with the aforesaid instructions provided by RBI, a reserve bank declaration said.

This action is based on shortage in regulatory compliance as well as is not planned to pronounce upon the legitimacy of any type of purchase or agreement participated in by the bank with its consumers, it stated.

The legal evaluation of the bank conducted by RBI with reference to its economic placement as on March 31, 2019, the Evaluation Record pertaining thereto and assessment of all related communication revealed, inter alia, that in non-compliance with the aforementioned directions provided by RBI.

The financial institution in particular circumstances (i) had updated/ regularised finance accounts of borrowers without recouping overdue amounts as well as (ii) had actually not identified existing non-performing funding accounts of customers as NPAs, on restructuring.

In promotion to the exact same, a notice was released to the financial institution encouraging it to justify regarding why a penalty need to not be enforced for contravention of the RBI directions.