Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Sir M Vishvesvaraya Co-operative Bank Ltd., Bengaluru, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank granted housing loans of more than Rs 70 lakh per beneficiary, contrary to the applicable RBI circular, and also extended a donation to a trust where a director of the bank was an administrator, violating another RBI circular. After issuing a show-cause notice and considering the bank's written reply, RBI held the violations to be substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Bengaluru, Karnataka