Case Brief
RBI, by order dated April 4, 2024, imposed a monetary penalty of ₹1.00 lakh on Dr. Jaiprakash Mundada Urban Co-operative Bank Limited, Hingoli, Maharashtra. The bank was found to have breached RBI Directions on ‘Management of Advances-UCBs’ and ‘Exposure Norms & Statutory/ Other Restrictions - UCBs’ by sanctioning gold loans beyond the prescribed ceiling under the bullet repayment scheme and by extending loans beyond the prescribed ceiling to nominal members. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Hingoli, Maharashtra