Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Model Co-operative Urban Bank Ltd., Hyderabad, Telangana. The action was taken 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 its directives and 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 warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Hyderabad, Telangana
- Order Date