Reserve Bank of India imposes monetary penalty on M/s Bhadradri Co-operative Urban Bank Ltd., Khammam, Telangana

Case Brief

By an order dated January 20, 2022, RBI imposed a monetary penalty of ₹2.00 lakh on Bhadradri Co-operative Urban Bank Ltd. The penalty was for non-compliance with RBI directions on 'Exposure Norms and Statutory / Other Restrictions-UCBs' and 'Management of Advances – UCBs'. RBI said the bank’s inspection report, based on its financial position as on March 31, 2020, revealed sanction of loans and making of investments in breach of exposure norms, as well as granting gold loans beyond the permissible limit under the bullet repayment scheme. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then concluded that the violations were substantiated.