Case Brief
RBI, by order dated January 08, 2024, imposed a monetary penalty of Rs 5.00 lakh on Dr. Panjabrao Deshmukh Urban Co-operative Bank Limited, Amravati, Maharashtra. The penalty was based on non-compliance with specific directions issued under the Supervisory Action Framework, the RBI Directions on Management of Advances-UCBs, and the KYC Directions, 2016. RBI said the bank had sanctioned certain fresh loans and advances with risk weight above 100% in violation of SAF directions, sanctioned gold loans under the Bullet Repayment Scheme beyond the regulatory limit, failed to perform periodic KYC updation and risk categorization reviews, and had not implemented robust software to alert on suspicious transactions. RBI concluded that the charges were substantiated and that monetary penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location