Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Ernakulam District Co-operative Bank Limited, Ernakulam (Kerala), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated Section 29(1)(b) by granting unsecured loans to M/s Mithra Agricultural Produce Committee (MAPC), and also violated Section 6(1)(i) and Section 29(1)(b) in the case of Rural Academy of Management Studies (RAMS), along with other violations cited in the show-cause notice. After issuing a show-cause notice and reviewing the bank's written reply, RBI concluded that the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ernakulam, Kerala