Case Brief
The Reserve Bank of India penalised City Co-operative Bank Ltd., Hassan under Section 47A read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violation related to RBI’s extant norms on grant of loans to directors or their specified relatives. 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 the monetary penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Hassan, Karnataka
- Order Date