Case Brief
RBI, by order dated August 08, 2023, imposed a monetary penalty of Rs 1 lakh on Vishwanathrao Patil Murgud Sahakari Bank Ltd., Murgud, Maharashtra. The penalty was imposed because the bank had not complied with RBI directions on Exposure Norms and Statutory/Other Restrictions - UCBs; inspection findings showed loans were sanctioned to nominal members for purposes other than those prescribed. RBI said the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank's reply to the show-cause notice.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Murgud, Maharashtra