RBI Imposes Rs3 Lakh Penalty on Indrayani Cooperative Bank
Moneylife Digital Team 25 October 2023
Reserve Bank of India (RBI) has imposed a penalty of Rs3 lakh on Indrayani Cooperative Bank Ltd from Pimpri in Maharashtra, for non-compliance with the directions on income recognition, asset classification, provisioning and other related matters –urban cooperative bank (UCBs) and know your customer (KYC) directions.
 
The statutory inspection of Indrayani Cooperative Bank conducted by RBI with reference to its financial position as of 31 March 2022, and examination of the inspection report (IR), risk assessment report (RAR) and all correspondence related revealed, that the Bank had not adhered to the prudential norms relating to income recognition, asset classification and provisioning and not implemented a system for periodic updation of KYC of its customers.
 
After considering the reply and oral submissions of the Bank during the personal hearing, RBI says it has concluded that the non-compliance charges with its directions were substantiated and warranted the imposition of a monetary penalty.
 
RBI says the penalty imposed on Indrayani Cooperative Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered by the banks with their customers.
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