Case Brief
The Reserve Bank of India imposed a monetary penalty on Mandya City Co-operative Bank Ltd., Mandya, Karnataka under Section 47A read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was imposed because the bank violated RBI directives/guidelines by sanctioning loans to the relative of one of its sitting directors. RBI issued a show-cause notice, the bank sought a personal hearing, and after considering the bank’s representation, RBI concluded that the violations were substantiated and warranted monetary penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Mandya, Karnataka