RBI imposes Rs 58 lakh penalty on Abhyudaya Co-operative Bank for non-compliance

The Reserve Bank of India (RBI) on Monday said it has imposed a penalty of Rs 58 lakh on Abhyudaya Co-operative Bank Limited, Mumbai for non-compliance with several directions, including on NPA related norms.

The penalty has been imposed for non-compliance of the directions issued by RBI on 'Placement of Deposits with other banks', 'Monitoring and Reporting Mechanism of Frauds', 'Income Recognition, Asset Classification, Provisioning and Other Related Matters (IRAC norms)' and 'Management of Advances'.

In a separate statement, the RBI said a penalty of Rs 1 lakh has been imposed on the Noida Commercial Co-operative Bank, Ghaziabad for contravention of certain norms of the Banking Regulation Act, 1949.

In both case, the penalities are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers, the RBI said.

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