India, Nov. 21 -- The Reserve Bank of India has levied a monetary penalty of Rs 1 lakh on Shri Basaveshwar Sahakari Bank Niyamitha, Bagalkot, for non-compliance with regulatory directions related to income recognition, asset classification, provisioning norms, and deposit account guidelines for co-operative banks.
The action follows an RBI inspection of the bank's financial position as of March 31, 2024, which revealed failures to classify certain loan accounts as NPAs and the opening of savings accounts for ineligible entities. After reviewing the bank's response and hearing submissions, RBI confirmed the violations and imposed the penalty under the Banking Regulation Act, 1949.
The RBI clarified that the penalty pertains to regulatory d...