Case Brief
RBI, by order dated May 14, 2024, imposed a monetary penalty of Rs 2.50 lakh on Noida Commercial Co-operative Bank Ltd., Ghaziabad, Uttar Pradesh. The action was taken after a statutory inspection and show-cause process and was based on contraventions of section 26A(2) read with section 56 of the Banking Regulation Act, 1949, along with non-compliance with RBI directions on loans and advances to directors and their related interests and the Master Circular on Frauds - Classification and Reporting. RBI said the sustained charges included failure to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, sanctioning a director-related loan, and failing to classify and report a fraud.
Action Snapshot
- Primary Impact
- Fine: Rs 2.50 L
- Entity Type
- Co-operative bank
- Location
- Ghaziabad, Uttar Pradesh