Reserve Bank of India imposes monetary penalty on Millath Co-operative Bank, Davangere, Karnataka

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10.00 lakh on Millath Co-operative Bank by order dated November 3, 2020. RBI said the bank failed to adhere to All-Inclusive Directions and other directions issued by the regulator, based on inspection findings as of March 31, 2019. The violations included permitting withdrawals in excess of the stipulated amount and sanctioning fresh loans and advances in breach of directions issued under the Supervisory Action Framework. RBI concluded that the charges of non-compliance were substantiated and warranted the penalty under the Banking Regulation Act, 1949.