Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.50 lakh on Andarsul Urban Co-operative Bank Ltd., Andarsul (Maharashtra), by order dated April 06, 2022. RBI said the bank had contravened its directions on Board of Directors and Exposure Norms & Statutory/Other Restrictions for urban co-operative banks by granting loans to relatives of directors. After a show-cause notice, the bank's replies and oral submissions were considered, and RBI held the non-compliance substantiated. The penalty was imposed 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 1.50 L
- Entity Type
- Co-operative bank
- Location
- Andarsul, Maharashtra