Money & Banking

RBI imposes ₹79 lakh penalty on Apna Sahakari Bank

Our Bureau Mumbai | Updated on September 24, 2021

Fine for non-compliance with directions on NPA classification, interest rate on deposits, and maintenance of deposit accounts

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹79 lakh on Apna Sahakari Bank, Mumbai, for non-compliance with its directions on non-performing asset (NPA) classification, interest rate on deposits, and maintenance of deposit accounts.

The central bank, in a statement, said this penalty has been imposed in exercise of powers vested in the RBI by the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to the aforesaid directions.

This action is based on deficiency in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, it added.

Referring to the statutory inspection of Apna Sahakari Bank, conducted by the RBI with reference to the bank’s financial position as on March 31, 2019, the statement said the Inspection Report pertaining thereto, and examination of all related correspondence revealed, inter alia, that the bank had not complied with the directions issued by the RBI on NPA classification.

Further, the bank had not complied with the RBI directions on payment of interest on deposits lying in current accounts of deceased individual depositors or sole proprietorship concerns while settling the claims and levying of penal charges in savings bank accounts for non-maintenance of minimum balances, the statement added.

In furtherance to the same, a notice was issued to the bank, advising it to show cause as to why penalty should not be imposed for contravention of aforesaid directions, the RBI said.

“After considering the bank’s reply to the notice, additional submissions and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the aforesaid directions,” the central bank said.

Published on September 24, 2021

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