Case Brief
RBI imposed, by order dated October 20, 2022, a monetary penalty of Rs 2.00 lakh on The City Co-operative Bank Ltd., Mysore, Karnataka. The penalty was imposed for non-adherence to RBI directions issued under Management of Advances-UCBs, after inspection findings showed instances of sanction of gold loans in breach of the cap under the bullet repayment scheme. RBI said 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), and that it was based on regulatory compliance deficiencies without pronouncing on the validity of customer transactions.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mysore, Karnataka