Chennai Central Co-op Bank penalized

The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on Chennai Central Co-operative Bank Ltd., Chennai, Tamil Nadu.

The bank was penalized for non-adherence of certain directions issued by RBI contained in the Circular on ‘Income Recognition, Assets Classification, Provisioning and Other Related Matters dated June 22, 1996.

This penalty has been imposed in exercise of powers vested in RBI under and after taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on 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, clarified RBI.