Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Needs of Life Co-operative Bank Ltd, Fort, Mumbai 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 directives and guidelines relating to loans and advances to directors and their relatives, unsecured overdraft facilities, donations made by the bank, breach of the 5% individual shareholding ceiling, exposure-limit breaches in real estate, commercial real estate and housing loans, breach of the 10% outstanding unsecured exposure limit, breach of the individual unsecured exposure limit of ₹2 lakh, and non-remission of funds to the Depositor Education and Awareness Fund. RBI issued a show-cause notice, considered the bank’s written reply, noted that the bank did not attend the personal hearing on September 4, 2017, and concluded the violations were substantiated and merited penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location