Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs. 5 lakh on Brahmadeodada Mane Sahakari Bank Ltd., Solapur, Maharashtra. The penalty was levied under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for several violations, including unsecured credit breaches, remission of debt in borrowal accounts, waiver of bank guarantee commission to insiders/related parties, inaccurate reporting to RBI, lending to primary co-operative societies, diversion of loan proceeds to director-linked concerns, unsecured advances beyond prudential limits, donations above limits, and KYC/AML non-compliance in some accounts. RBI issued a show cause notice, considered the bank's written reply, and concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location