Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Bijnor Urban Co-operative Bank Ltd., Bijnor, Uttar Pradesh, 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 had violated rules by sanctioning loans and advances to directors and their relatives, and by breaching KYC requirements under the referenced RBI circular. The bank had received a show-cause notice and submitted a written reply, but RBI concluded the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Bijnor, Uttar Pradesh