Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Deccan Urban Co-operative Bank Limited, Vijayapura, Karnataka, by order dated November 16, 2020. The penalty was levied because the bank had sanctioned loans to relatives of a Director, contrary to RBI directions prohibiting loans and advances to directors. RBI said the contravention was established after inspection and after considering the bank’s reply and oral submissions, and the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Vijayapura, Karnataka