Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Jagruti Co-operative Bank Ltd., Belgaum, Karnataka, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank violated its instructions by sanctioning loans to present directors, their relatives, and firms/concerns in which they were interested, and by suppressing this information in the relevant quarterly statement proforma I & II submitted to RBI. After a show-cause process and consideration of the bank's reply and personal submissions, RBI concluded that the violations were substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Belgaum, Karnataka