Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Abhyudaya Mahila Urban Co-operative Bank Ltd., Channapatna, Karnataka under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was levied because the bank violated RBI directives in para 3 of the circular on loans and advances to directors, relatives, and firms/concerns in which they are interested. RBI issued a show-cause notice, considered the bank's representation and personal hearing request, and concluded that the violations were substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Channapatna, Karnataka