Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Sahebrao Deshmukh Co-operative Bank Ltd., Mumbai under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its instructions/directives on loan and advances to directors, relatives, and firms/concerns in which they are interested. After a show-cause process and review of the bank’s reply and submissions, RBI concluded that the violations were substantiated and justified the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra
- Order Date