Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on Dr. Babasaheb Ambedkar Urban Co-operative Bank Ltd., Nagpur 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 Section 20 of the BR Act (AACS) by granting loans or advances to its directors, and also breached RBI operational instructions, KYC/AML guidelines, and requirements relating to migration audit and compliance submission to the 2017 Inspection Report. After issuing two show-cause notices and reviewing the bank's partial written reply, RBI concluded that the violations were substantiated and penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Nagpur, Maharashtra