RBI slaps Rs 15 lakh penalty on Baghat Urban Co-operative Bank, Delhi Nagrik Sehkari Bank – Check Details Here!

The Reserve Bank of India (RBI) has on Wednesday said it has imposed a penalty of Rs 15 lakh on The Baghat Urban Co-operative Bank Limited, Solan, for violation of certain norms, including, those related to NPA classification, a PTI report said.

The RBI said that the inspection report of The Baghat Urban Co-operative Bank, based on its financial position as on March 31, 2019, revealed non-adherence with/violation of directions, including non-identification of NPAs, wrong classification of assets, inadequate provisions made due to wrong classification of assets and non-adherence to exposure norms for housing, real estate and commercial real estate (CRE).

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A notice was earlier issued to the bank to show cause as to why a penalty should not be imposed for violation of the said directions.

After considering the bank's reply and oral submissions, it came to the conclusion that the charges were substantiated and warranted imposition of monetary penalty, RBI said.
In another statement, the RBI said it has imposed a penalty of Rs 1 lakh on Delhi Nagrik Sehkari Bank Limited, New Delhi, for non-compliance with certain directions issued by the central bank.

The inspection report of Delhi Nagrik Sehkari Bank, based on its financial position as on March 31, 2019, revealed non-adherence with prudential inter-bank (gross) exposure limit, RBI said.
For both cases, the RBI said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers.