Case Brief
By order dated February 23, 2024, RBI imposed a monetary penalty of ₹5.00 lakh on Adarsh Mahila Co-operative Bank Limited, Muzaffarnagar, Uttar Pradesh. The penalty was for non-compliance with RBI directions relating to loans and advances to directors, their relatives, and firms/concerns in which they are interested, as well as specific directions issued under the Supervisory Action Framework (SAF). RBI’s inspection, with reference to the bank’s financial position as on March 31, 2022, found that the bank sanctioned a loan in which a director’s relative was interested, offered deposit interest rates higher than State Bank of India rates for various tenors, and sanctioned fresh loans and advances carrying risk weights of more than 100%. RBI held the contraventions substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location