Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Vyapari Sahakari Bank Maryadit, Solapur (Maharashtra) for contravention of RBI directions applicable to Urban Co-operative Banks, including Exposure Norms & Statutory/Other Restrictions and Board of Directors-UCBs. An inspection based on the bank's position as on March 31, 2021 found that the bank had given donations beyond the permissible limit and sanctioned director-related loans in violation of RBI directions. After a show-cause notice, replies from the bank, and oral submissions at a personal hearing, RBI held the charges to be substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Solapur, Maharashtra