RBI imposes monetary penalty on The Rohtak Central Co-operative Bank Limited, Rohtak

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Rohtak Central Co-operative Bank Limited, Rohtak by order dated March 27, 2024. RBI said the bank contravened section 20(1) and section 26A(2) read with section 56 of the Banking Regulation Act, 1949. The violations sustained in supervisory review were that the bank did not transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed period and sanctioned one unsecured loan and renewed a secured cash credit limit to two of its directors. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.