Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 10 lakh on Priyadarshini Urban Co-operative Bank Ltd, Adoni, Kurnool District, Andhra Pradesh. The penalty was based on inspection findings showing contravention/non-compliance with RBI directions on sanction of loans to directors, income recognition, asset classification, provisioning norms, and exposure norms. RBI said the bank failed to adhere to the relevant directions, considered the bank's reply and hearing submissions, and imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS). RBI also clarified that the action is only for regulatory non-compliance and does not pronounce on the validity of any customer transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Co-operative bank
- Location