RBI imposes monetary penalty on Krushiseva Urban Co-operative Bank Limited, Kole, Solapur, Maharashtra

Case Brief

RBI, by order dated January 08, 2024, imposed a monetary penalty on Krushiseva Urban Co-operative Bank Limited, Kole, Solapur, Maharashtra for non-compliance with RBI directions on loans and advances to directors and their relatives, board-related directions for UCBs, exposure norms and statutory/other restrictions, and specific directions issued under the Supervisory Action Framework. RBI’s inspection found that the bank sanctioned loans to directors and their relatives and incurred capital expenditure without prior approval of RBI. After considering the bank’s reply and submissions, RBI concluded that the charges were substantiated and warranted penalty under the Banking Regulation Act, 1949.