RBI Slaps Rs1.50 Lakh Penalty on Odisha Gramya Bank for Regulatory Violations
Moneylife Digital Team 07 May 2024
Reserve Bank of India (RBI) has imposed a Rs1.50 lakh penalty on Odisha Gramya Bank for non-compliance with the directions issued by the banking regulator. 
 
Odisha Gramya Bank has been penalised for non-compliance with the directions issued by RBI on strengthening prudential norms - provisioning, asset classification and exposure limit and regional rural banks - income recognition, asset classification and provisioning norms - non-performing assets (NPAs).
 
Statutory inspection of Odisha Gramya Bank conducted by the National Bank for Agriculture and Rural Development (NABARD) concerning its financial position as of 31 March 2023, revealed that the charge of failure to classify certain loan accounts as non-performing asset (NPA) resulting in divergence in asset classification of loan accounts was sustained.
 
"After considering the reply and oral submissions of the bank during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty," the central bank says.
 
RBI said the penalty are based on deficiencies in regulatory compliance and are not intended to be pronounced on the validity of any transaction or agreement they entered into with their customer.
Comments
Array
Free Helpline
Legal Credit
Feedback