The Reserve Bank has imposed a monetary penalty of ₹66 lakh on City Union Bank Ltd. (CUB) for its ‘failure’ to comply with certain directions on “prudential norms on income recognition, asset classification and provisioning pertaining to advances and divergence in NPA and KYC directions.”
On Monday, CUB received a notice from the RBI asking as to why penalty should not be imposed on it for ‘failure’ to comply with the directions. Accordingly, the BSE was intimated on Tuesday.
The statutory inspection carried out by the RBI with reference to the financial position of CUB as of March 31, 2022, along with Risk Assessment Report and Inspection Report disclosed the non-compliance by the bank.
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