Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Pravara Sahakari Bank Ltd., Ahmednagar, Maharashtra under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank had violated directives/guidelines on the maximum limit on advances by sanctioning loans to trusts managing different colleges in excess of the single borrower norm. After examining the bank's written reply and submissions made during the personal hearing, RBI concluded that the contravention was substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmednagar, Maharashtra