RBI imposes monetary penalty on Vidyasagar Central Co-operative Bank Limited, Midnapore, West Bengal

Case Brief

By an order dated September 14, 2023, RBI imposed a monetary penalty of ₹1.50 lakh on Vidyasagar Central Co-operative Bank Limited, Midnapore, West Bengal. The bank was found to have failed to comply with RBI directions on Housing Finance, specifically the limit on the quantum of housing loan that can be granted to an individual borrower by a District Central Co-operative Bank. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a NABARD inspection, a show-cause notice, and consideration of the bank's submissions and personal hearing.