The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Thoothukudi District Central Co-operative Bank Ltd., Thoothukudi, Tamil Nadu for non-compliance with the directions issued by the National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds – Guidelines for Classification, Reporting and Monitoring’.
This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4) (i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by NABARD with reference to its financial position as on March 31, 2023.
“Based on supervisory findings of non-compliance with NABARD directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions”, reads the RBI press release.
