Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 15.00 lakh on The Karad Urban Co-operative Bank Ltd., Mumbai under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank breached the individual housing loan limit, the limit on loans for repair of houses, and diverted loans meant for purchase of plot/land. Although the bank responded to a show-cause notice with written and oral submissions, RBI concluded that the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 15.0 L
- Entity Type
- Co-operative bank
- Location
- Mumbai
- Order Date