Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Sudha Co-Operative Urban Bank Ltd., Suryapet, Telangana, by order dated February 15, 2023. RBI said the bank had not complied with directions relating to Board of Directors, Exposure Norms and Statutory/Other Restrictions, and Income Recognition, Asset Classification, Provisioning and related matters applicable to urban co-operative banks. The inspection reports indicated that the bank had extended loans to directors, engaged in ever-greening of director-related loans, and breached single borrower exposure limits. After considering the bank's reply and oral submissions, RBI held the charge substantiated and imposed the penalty under the Banking Regulation Act, 1949 (AACS).
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location