RBI Imposes Monetary Penalty on The Raipur Urban Mercantile Co-operative Bank Limited, Raipur

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5,00,000 on The Raipur Urban Mercantile Co-operative Bank Limited, Raipur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed a show-cause process and was based on RBI's finding that the bank violated directives/guidelines prohibiting the grant of loans and advances to its directors, their relatives, and concerns in which they are interested.