The central financial institution had performed the statutory inspection of Bassein Catholic Co-operative Financial institution close to its monetary place as on March 31, 2019.
In line with the assertion, in non-compliance with IRAC norms, the financial institution in sure situations had upgraded/regularised mortgage accounts of debtors with out recovering overdue quantities and had not categorised current non-performing mortgage accounts of debtors as NPAs on restructuring.
A present trigger discover was issued to the lender.
“After contemplating the financial institution’s reply to the discover, oral submissions made throughout the private listening to and examination of extra submissions made by it, RBI got here to conclusion that the cost of non-compliance…was substantiated and warranted imposition of financial penalty,” it mentioned.
In a separate launch, the RBI mentioned it has imposed a penalty of Rs 50,000 on Jila Sahakari Kendriya Financial institution Maryadit, Morena (Madhya Pradesh), for contravention of its instructions associated to Know Your Buyer (KYC).
The central financial institution, nonetheless, mentioned the penalties are based mostly on deficiency in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the banks with their prospects.