RBI · Enforcement
RBI fines Citizen Co-operative Bank ₹50,000 for NPA classification failure
The central bank penalised the Bengaluru-based lender for not classifying certain loans as non-performing assets.
What changed
- RBI imposed a monetary penalty of ₹50,000 on The Citizen Co-operative Bank Limited
- Penalty for non-compliance with NPA classification directions
- Bank failed to classify certain loan accounts as non-performing assets
The read
The Reserve Bank of India has slapped a ₹50,000 penalty on The Citizen Co-operative Bank Limited for failing to classify certain loan accounts as non-performing assets, violating its directions on income recognition and asset classification. The action, based on an inspection with reference to March 31, 2025, shows RBI tolerates no slippages in prudential norms, even for small co-operative banks. The penalty is a reminder that regulatory compliance is non-negotiable.
Key numbers
- Penalty amount: ₹50,000
- Inspection date: March 31, 2025
- Bank: The Citizen Co-operative Bank Limited
- Section: 47A(1)(c) of Banking Regulation Act
Primary source: rbi.org.in