Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Urban Co-operative Bank Ltd., Bhalki, Karnataka, 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 instructions on sanctioning and renewing loans and advances to directors, their relatives, and firms/concerns in which directors were interested, suppressed these details in the relevant quarterly statements submitted to RBI, and furnished false information to the RBI inspecting officer. After a show-cause process, written reply, and personal submission, RBI concluded that the violations were established beyond doubt and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Bhalki, Karnataka