RBI imposed penalty on The Chittoor Co-operative Town Bank Ltd., Chittoor, Andhra Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10,000 on The Chittoor Co-operative Town Bank Ltd., Chittoor, Andhra Pradesh. The penalty was levied under Section 47A(1)(c) 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 on loans and advances to directors and their relatives. RBI had issued a show-cause notice, the bank submitted a written reply, and the matter was also considered after personal hearing before the violations were held to be substantiated.