RBI imposes penalty on The Yashwant Co-operative Bank Limited, Phaltan, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Yashwant Co-operative Bank Limited, Phaltan, Maharashtra 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 provisions of the Banking Regulation Act, 1949 (AACS) and RBI directions/instructions/guidelines relating to individual unsecured advances exposure limit, group borrower limit, and submission of compliance to RBI. After issuing a show-cause notice and considering the bank's written reply and oral submissions, RBI concluded that the violations were substantiated and warranted the penalty.