Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Sri Kalahasti Co-operative Town Bank Ltd., Sri Kalahasti, Andhra 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 violated Section 20 and Section 20A of the Act and its directives/guidelines on loans and advances to directors and their relatives. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Sri Kalahasti, Andhra Pradesh