BY TC News Desk
Agartala: May 16. The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on Tripura Gramin Bank for contravention of non-adherence with the directions issued by RBI on ‘Strengthening of Prudential Norms’.
On a press release, RBI said it has imposed, by an order dated May 10, 2023, a monetary penalty of Rs. 2 Lakh on Tripura Gramin Bank, Agartala, Tripura for contravention of/non-adherence with the directions issued by RBI on ‘Strengthening of Prudential Norms – Provisioning, Asset Classification and Exposure Limit’ and ‘Regional Rural Banks – Income Recognition, Asset Classification and Provisioning Norms – Non-Performing Assets (NPAs)’.
Sharing the details the RBI said the statutory inspection of the bank was conducted by NABARD with reference to its financial position as on March 31, 2022 and the examination of the Inspection Report revealed, inter alia, that the bank had failed to classify certain loan account as non performing in accordance with the IRAC norms. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.
“After considering the bank’s reply to the notice, additional submissions made and oral submissions made by it during Personal Hearing, RBI came to the conclusion that the aforementioned charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty”, the press release added.