Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 25,000 on The Dindigul Urban Co-operative Bank Ltd., Dindigul, Tamil Nadu, by order dated February 28, 2024. The penalty was imposed after a statutory inspection and supervisory review found non-compliance with RBI directions on 'Exposure Norms and Statutory/ Other Restrictions – UCBs'. RBI noted that the charge of sanctioning loans to nominal members in excess of the prescribed ceiling was sustained after considering the bank's reply and oral submissions. The action was taken 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 25,000
- Entity Type
- Co-operative bank
- Location
- Dindigul, Tamil Nadu