Mumbai (Maharashtra) [India], November 29 (ANI): The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50 lakh on Bharat Co-operative Bank (Mumbai) Ltd, Maharashtra, for non-compliance with the directions issued by the central bank on 'Income Recognition, Asset Classification, Provisioning and Other Related Matters' (IRAC norms).

The central bank said this penalty had been imposed in exercise of powers vested in RBI conferred under Banking Regulation Act, 1949, according to a statement of the central bank released on Monday.

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, the RBI said in the statement.

The central bank said the statutory inspection of the bank done by RBI with reference to its financial position as on March 31, 2020, and examination of the Risk Assessment Report, inspection report and all related correspondence pertaining to the same, revealed that the bank did not classify certain accounts as non-performing assets in accordance with the IRAC norms. Then, the RBI said a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the central bank's directions.

After considering the bank's reply to the notice, additional submissions made by it and the oral submissions made during the personal hearing, the central bank said it came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty. (ANI)