BBN Bureau
People’s Coop Bank Tripunithura, Nilambur Coop Urban Bank fined
KOCHI/March 07-2022: The Reserve Bank of India (RBI) imposed monetary penalty of on Tripunithura bank for non-adherence/violation of directions issued under Income Recognition, Asset Classification, Provisioning and Other related Matters. KOCHI/March 07-2022: Reserve Bank of India (RBI) has imposed Rs5 lakh monetary penalty each on two Kerala based urban cooperative banks – People’s Urban Co-operative Bank Ltd, Tripunithura (Ernakulam) and Nilambur Co-operative Urban Bank Ltd., No.F 1043, Nilambur, Malappuram.
In the case of Nilambur Cooperative bank, the RBI said the bank worked in contravention of the directions issued by RBI on “Income Recognition and Asset Classification” and on “Management of Advances – UCBs.
RBI said the penalty has been imposed on both banks in the cooperative sector in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (AACS) taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
RBI said the actions are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
