The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs.79 lakh on Apna Sahakari Bank Ltd, Mumbai, for non-compliance with the Reserve bank guidelines.

The Central Bank said statutory inspection of the bank revealed that it had not complied with the directions on non-performing asset 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 vis-a-vis its financial position as of March 31, 2019.

Upon inspection, it came to light that the bank had not complied with many directives issued by the RBI, such as Non-Performing Asset (NPA) classification, payment of interest on deposits lying in current accounts of deceased individual depositors or sole proprietorship concerns while settling the claims.

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.

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