Mumbai: The apex bank in the country, the Reserve Bank of India (RBI) imposed a penalty of Rs 56 lakh on The Nainital Bank, Uttarakhand. The fine was imposed for non-compliance with certain norms related to classification of non-performing assets and frauds.
The RBI has conducted a Statutory Inspection for Supervisory Evaluation (ISE) of the bank with reference to its financial position as on March 31, 2019. It found the several non-compliance in the inspection. As per RBI, there was a divergence between bank’s reported NPAs and NPAs assessed during the inspection on account of failure to classify certain borrower accounts as NPA. There was also a failure to disclose material divergences relating to asset classification and provisioning identified by the RBI, despite exceeding the defined threshold, in the Notes to Accounts.
Also Read: Union government re-appoints Shaktikanta Das as RBI governor for another 3 years
The RBI clarified that the fine was imposed is based on the deficiencies 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.
Post Your Comments