Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹4.00 lakh on The Ojhar Merchants’ Co-operative Bank Ltd., Ojhar, Dist- Nasik, Maharashtra 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 had violated directives/instructions/guidelines relating to director-related advances and declaration of dividend by an urban co-operative bank. After issuing a show cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and merited penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location
- Ojhar, Maharashtra