Case Brief
RBI imposed a monetary penalty on United India Co-operative Bank Limited, Nagina, UP by order dated March 09, 2022. The bank was found to have contravened section 20 and section 35A read with section 56 of the Banking Regulation Act, 1949, after inspection revealed that it sanctioned an unsecured housing loan to a director and did not submit the required return on connected lending. RBI said the penalty was imposed under section 47A(1)(c) read with section 46(4)(i) and section 56, and clarified that the action is based on regulatory compliance deficiencies rather than the validity of customer transactions.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Nagina, UP