Case Brief
The Reserve Bank of India penalised Rupee Co-operative Bank Ltd., Pune, Maharashtra, with a monetary penalty of Rs 5 lakh under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The bank violated RBI directives by purchasing/discounting cheques beyond the prescribed ceiling in current accounts and by disbursing loans to individuals for purchase of land above the permitted limit. After issuing a show-cause notice and considering the bank's reply, RBI held the violations substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Pune, Maharashtra
- Order Date