RBI imposes Rs 79 lakh penalty on Mumbai-based Apna Sahakari Bank
The Reserve Bank has imposed a penalty of Rs 79 lakh on Apna Sahakari Bank, Mumbai for non-compliance of certain directions including NPA classification.
RBI said the bank’s statutory inspection revealed that it had not complied with directions on NPA classification, payment of interest on deposits in current accounts of deceased individual depositors or while settling claims and levying penal charges in savings bank . Accounts for not maintaining minimum balance
The statutory inspection of Apna Sahakari Bank was with reference to its financial position as on 31st March, 2019.
A notice was issued to the lender asking it to show cause why penalty should not be imposed for violation of the above directions.
RBI said the penalty was imposed after considering the bank’s reply to the notice, additional submissions and oral submissions during the personal hearing.
However, RBI said the penalty was imposed due to lack of regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
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