Case Brief
The Reserve Bank of India penalised The Town Co-operative Bank Ltd., Hoskote, Karnataka, by imposing a monetary penalty of Rs 5 lakh under Sections 47A(1)(b) and 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had acquired and used a non-banking asset in violation of Sections 6 and 9 of the Act, breached directives on loans and advances to directors and related persons/entities, and declared and paid dividend contrary to RBI instructions. The bank had received a show-cause notice, submitted a written reply, and made a personal submission, but RBI concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Hoskote, Karnataka