Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Vasantdada Nagari Sahakari Bank Ltd., Osmanabad under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violations cited were non-compliance with RBI directives/guidelines on the maximum limit on unsecured advances, sanctioning loans and advances to firms in which directors and their relatives were interested, and failure to follow Income Recognition, Asset Classification and Provisioning norms. RBI had issued a show-cause notice, received the bank’s written reply, and after examining the facts concluded that the breaches were substantiated and merited penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Osmanabad