NS reserve Bank of India Said on Tuesday that he has imposed a fine of Rs 90 lakh Vasai Vikas Sahakari Bank, Maharashtra, for compliance with certain directions, which include classification of loans: NPA, and other directions. In a statement, the Reserve Bank said that the bank has not complied with its instructions to ensure end-use of funds in borrowal accounts and classification as loans/advances. non-performing assetsRBI’s specific direction to ensure that the balance sheet and profit and loss account of the bank are signed by at least three of its directors.

The central bank said that the disclosure was made after examining the bank’s statutory inspection, inspection reports and all related correspondence with regard to the financial position of the bank as on March 31, 2019.

The penalty was imposed after considering the bank’s replies. Show cause notice and oral submissions made during the personal hearing, the RBI said.

In another statement, the RBI said it has imposed a monetary penalty of Rs 7 lakh on The civic urban cooperative Bank, Jalandhar, Punjab for “compliance/contravention” of certain directions relating to non-recognition of NPAs, misclassification of assets and inadequate provisions on account of misclassification of assets.

In both the cases, RBI said, the penalties were based on lack of regulatory compliance and were not intended to impinge on the validity of any transaction or agreement entered into by them with their customers.