Case Brief
By order dated December 19, 2023, RBI imposed a monetary penalty on The Stambhadri Co-operative Urban Bank Ltd., Khammam, Telangana. The bank was found non-compliant with RBI directions on 'Board of Directors - UCBs' and on 'Loans and advances to directors, their relatives, and firms/concerns in which they are interested', after RBI's statutory inspection revealed that the bank had extended loans to a director and directors’ relatives. RBI concluded that the charge was substantiated and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Khammam, Telangana