RBI imposes monetary penalty on The Nellore Co-operative Urban Bank Limited, Gandhi Nagar, Nellore District, Andhra Pradesh

Case Brief

The Reserve Bank of India imposed an aggregate monetary penalty of ₹10.00 lakh on The Nellore Co-operative Urban Bank Limited, Gandhi Nagar, Nellore District, Andhra Pradesh. RBI said the penalty was for non-adherence to directions on prohibition of loans and advances to directors and their relatives and firms/concerns in which they are interested, as well as exposure norms and statutory/other restrictions applicable to UCBs. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS), after inspection findings for the bank’s position as on March 31, 2020, and after considering the bank’s reply and oral submissions.