RBI imposes monetary penalty on District Co-operative Bank Limited, Dehradun, Uttarakhand

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on District Co-operative Bank Limited, Dehradun, Uttarakhand, by order dated March 31, 2024. The penalty was imposed after a statutory inspection conducted by NABARD and subsequent supervisory proceedings found contravention of section 20(1)(b) read with section 56 of the Banking Regulation Act, 1949. RBI concluded that the charge of renewing and thereby granting a secured loan to its directors/firm in which they were interested was sustained. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act, and RBI noted that the action was based on deficiencies in regulatory compliance and was without prejudice to any other action that may be initiated.