Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹15.00 lakh on Millath Co-operative Bank Limited, Davangere under Section 47A read with Section 46(4) of the Banking Regulation Act, 1949, as applicable to co-operative societies. RBI said the bank violated its directives/guidelines by sanctioning loans and advances to directors and their relatives, issuing vehicle loans and staff loans without supporting documents, and failing to report cash transactions above ₹10 lakh per month in aggregate to the Financial Intelligence Unit, New Delhi. After a show-cause notice and personal hearing, RBI concluded that the violations were substantiated and penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 15.0 L
- Entity Type
- Co-operative bank
- Location
- Davangere, Karnataka