Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on Janata Urban Co-operative Bank Ltd., Wai, District Satara under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that during FY 2013-14 the bank’s credit exposure towards housing/real estate/commercial real estate was 18.8% of the preceding year’s net total assets, breaching the 15% limit prescribed by an RBI circular dated July 01, 2013. After issuing a show-cause notice and reviewing the bank’s written reply and further submissions, RBI concluded the violation was substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Wai, Maharashtra