Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Pioneer Urban Co-operative Bank Ltd., Belgaum, Karnataka, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated its instructions by sanctioning a loan to a company in which a director of the bank was interested and by suppressing that information in the relevant quarterly statement proformas I & II submitted to RBI. After a show-cause notice, the bank's written reply, and personal submissions, RBI concluded that the violations were substantiated and deserved the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Belgaum, Karnataka