Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Bhavana Rishi 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) after RBI found violations of its directives and guidelines concerning loans and advances to directors and their relatives. RBI had issued a show-cause notice, considered the bank’s written reply and provided a personal hearing before concluding that the contraventions were substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Hyderabad, Telangana