Case Brief
By an order dated December 19, 2023, RBI imposed a monetary penalty of Rs 25,000 on The Subramanianagar Co-operative Urban Bank Ltd., Salem, Tamil Nadu. The action was taken for non-compliance with RBI's directions on 'Board of Directors - UCBs' and on 'Loans and advances to directors, their relatives, and firms/concerns in which they are interested'. RBI's inspection found that the bank had extended loans to a relative of a director, and after issuing a show-cause notice and considering the bank's reply and oral submissions, RBI concluded that the charge was substantiated and warranted penalty under the Banking Regulation Act, 1949 (AACS).
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Salem, Tamil Nadu