Case Brief
By an order dated May 04, 2023, RBI imposed a monetary penalty of ₹2.00 lakh on The Trichur Urban Co-operative Bank Ltd., Thrissur, Kerala. The penalty was imposed for non-compliance with RBI directions on Management of Advance – UCBs, after an inspection revealed instances of sanction of gold loans in breach of the cap under the bullet repayment scheme. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the violation was substantiated. 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).
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Thrissur, Kerala