Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated its directives/guidelines on loans and advances to directors by purchasing cheques beyond Rs 0.50 lakh relating to relatives of a director. After a show-cause notice, the bank’s written reply, and a personal hearing, RBI held the violations substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmednagar, Maharashtra
- Order Date