RBI Slaps Baghat Urban Co-operative Bank, Solan With Rs 15 Lakh Penalty
The Reserve Bank of India(RBI) has said that the Central Bank has put up a total of Rs 15 lakh on The Baghat Urban Co-operative Bank Limited, Solan, for violation of particular rules which includes, those related to Non-Performing Asset (NPA) classification.
The Central Bank has simultaneously imposed a penalty of Rs 1 lakh on Delhi Nagrik Sehkari Bank Limited, New Delhi, citing non-compliance with several guidelines issued by the RBI.
The assessment report of The Baghat Urban Co-usable Bank, in light of its financial situation as of March 31, 2019, uncovered non-adherence with violations of guidelines, including non-ID of NPAs, wrong classifications of resources or assets, insufficient arrangements made because of the wrong classification of assets and non-adherence to exposure standards for housing, real estate and commercial real estate (CRE), said the Central Bank.
Talking about the inspection report of Nagrik Sehkari Bank, RBI came to know about the non-adherence with the prudential inter-bank (gross) exposure limit.
RBI directed notice to the bank to show cause and asked them to explain their stand and banks should explain why, it should not impose a penalty for violation of the said guidelines and directions.
After the process of oral submission and reply from the banks, RBI decided to impose the fine as it came to the conclusion that the allegations were substantiated.
