Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs. 5.00 lakh on Bhandari Co-operative Bank Ltd., Dadar, Maharashtra under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank sanctioned unsecured advances beyond the prescribed ceiling and engaged in evergreening of accounts by closing non-performing loans, contrary to RBI directives and IRAC guidelines.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Dadar, Maharashtra
- Order Date