NEW DELHI– According to several Indian news outlets, Bassen Catholic Cooperative Bank [UCB], Vasai is regretting why it did not adhere to the recently issued directives governing accounting processes.
This is after the Reserve Bank of India [RBI] imposed a monetary penalty of Rs 49.00 lakh on the cooperative bank. The UCB was faulted for non-compliance with the directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and other matters such as Income Recognition, Asset Classification norms [IRAC norms].
This action is based on a deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, said RBI in a recent press release.
The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2019 revealed the financial institution in certain instances had upgraded/ regularised loan accounts of borrowers without recovering overdue amounts. It also failed to classify existing non-performing loan accounts of borrowers as Non-performing Assets [NPAs], on restructuring.
A notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions, aRBIs stated therein.
After considering the lender’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI came to conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.
Meanwhile, Bombay-based Mercantile Cooperative Bank celebrated its 84th Foundation Day days ago with full gusto and enthusiasm.
The lender held various functions at its branches to remember the journey and stalwarts who played an important role in taking the lender to great heights.
A message released by the financial institution on this occasion read, “Thank you for being a part of our illustrious journey. We express our gratitude to our customers, members, stakeholders, and well-wishers on the occasion of the 84th Foundation day of the bank.”
The bank was established in 1939 and has 52 branches in 10 states. It is the first Co-operative Bank to be granted Scheduled status in the year 1988 by RBI.
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