Mumbai, October 29: The Reserve Bank of India on Tuesday imposed a penalty of Rs 1 Crore on Pune-based Janata Sahakari Bank Ltd for noncompliance with directions issued by it. The apex bank imposed the penalty on the Income Recognition & Asset Classification (IRAC) norms, management of advances and exposure norms and statutory or other restrictions. RBI Imposes Rs 1 Crore Fine on Lakshmi Vilas Bank, Rs 75 Lakh on Syndicate Bank for Violating Norms.
Apart from this, RBI informed that it took the action which is based on deficiencies in regulatory compliance. Also, it stated this penalty is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Among the other announcements, RBI imposed a penalty of Rs 25 Lakhs on Jalgaon Peoples Co-operative Bank Ltd. in Jalgaon.
With details pouring in, the apex bank imposed the penalty on Jalgaon Peoples Co-operative Bank Ltd after it received information that the co-operative bank was not following directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms and Management of Advances. Like Janata Sahakari Bank Ltd, RBI said that this penalty would not have negative implications on the day-to-day transaction work. RBI to Ban Rs 2000 Notes And Release New Rs 1000 Notes on January 1, 2020? Viral Messages Fact-Checked.
Previously too in October, RBI had imposed a penalty of Rs 1 crore on Lakshmi Vilas Bank for non-compliance with certain provisions of directions on IRAC norms. Same took place with Syndicate Bank, which was asked to pay Rs 75 Lakhs for non-compliance with directions issued on Frauds Classification and Reporting, and Housing Sector: Innovative Housing Loan Products -- Upfront disbursal of housing loans.