Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5,00,000 on The Bharath Co-operative Bank Ltd., Bangalore, Karnataka, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found violations of its instructions on sanctioning and renewing loans and advances to directors, their relatives, and firms/concerns in which directors were interested, along with suppression of these transactions in the relevant quarterly statements submitted to RBI and furnishing false information to the RBI inspecting officer. After a show-cause notice, RBI considered the bank's written reply and personal submissions before concluding that the violations were substantiated and deserved penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location