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.

The RBI said statutory inspection of the bank revealed that it had not complied with the directions on NPA classification, payment of interest on deposits lying in current accounts of deceased individual depositors or sole proprietorship concerns while settling the claims and levying of penal charges in savings bank accounts for non-maintenance of minimum balances.

The statutory inspection of Apna Sahakari Bank was with reference to its financial position as on March 31, 2019.

A notice was issued to the lender asking it to show cause as to why penalty should not be imposed for contravention of aforesaid directions.

The penalty was imposed after considering the bank's reply to the notice, additional submissions and oral submissions made during personal hearing, RBI said.

The RBI, however, added the penalty was imposed because of 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.