RBI imposes Rs 79 lakh penalty on Mumbai-based Apna Sahakari Bank

The Reserve Bank has imposed a penalty of Rs 79 lakh on Apna Sahakari Bank, Mumbai for non-compliance with certain directions, including on NPA classification.

Apna Sahakari Bank, Mumbai, has been fined Rs 79 lakh by the Reserve Bank for failing to follow specific instructions, particularly those regarding NPA classification.

According to the RBI, the bank failed to comply with the directives on NPA classification, payment of interest on deposits in current accounts of deceased individual depositors or sole proprietorship concerns when settling claims, and levying of penal charges in savings bank accounts for non-maintenance of minimum balances during a statutory inspection.

Apna Sahakari Bank’s financial situation as of March 31, 2019, was the subject of a statutory inspection.

A notification was sent to the lender, requesting that it show cause why a penalty should not be applied for failing to follow the instructions as mentioned earlier.

The RBI, on the other hand, stated that the penalty was issued due to a lack of regulatory compliance and that it was not meant to rule on the legitimacy of any transaction or agreement between the bank and its clients.