RBI imposed a fine of Rs 79 lakh on another cooperative bank, know why the penalty was imposed

New Delhi, 27/9: The Reserve Bank of India (RBI) has imposed a fine of Rs 79 lakh on Apna Sahakari Bank, Mumbai. Penalty action has been taken on Apna Sahakari Bank for non-compliance of certain instructions including Non-Performing Assets (NPA) classification. RBI said that the statutory inspection of the bank reveals that it has levied charges such as NPA classification, payment of interest on the amount standing in the current accounts of the deceased or non-settlement of claims and non-maintenance of minimum balance on the savings account. The rules have not been followed. Hence the penalty has been imposed on the bank.

RBI had sent show cause notice to the bank
Statutory Inspection of Apna Sahakari Bank was done on 31 March 2019 for its financial condition. Apna Sahakari Bank was first sent a notice. It was asked why the penalty was not imposed as per the instructions. The notice asked him to show cause as to why penalty should not be imposed on him for contravention of RBI’s directions.