Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Swasakthi Mercantile Co-operative Urban Bank Ltd., Vijayawada, Krishna District, Andhra Pradesh. The penalty was levied under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), after RBI found violations of Section 20 of the Act and its directives/guidelines on loans and advances to directors and their relatives. RBI had issued a show-cause notice, the bank replied in writing, and the violations were later held to be substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Vijayawada, Andhra Pradesh