The Reserve Bank on Tuesday said it has imposed a penalty of Rs 2.44 lakh on Spice Money Limited for contravention of certain norms.
The RBI also imposed a fine of Rs 5 lakh on The Kuppam Co-operative Town Bank, Kuppam, Chittoor district (Andhra Pradesh) for deficiencies in regulatory compliance.
Regarding Spice Money, RBI said it was observed that the entity was non-compliant with directions issued by the central bank on maintenance of escrow account balance.
In another statement, it said the inspection report of the cooperative bank based on its financial position as on March 31, 2019 revealed "contravention of/non-compliance" with the directions on "Income Recognition, Asset Classification, Provisioning and other related Matters - UCB's and also on Board of Directors - UCBs".
RBI further said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
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