RBI imposes monetary penalty on Alibag Co-operative Urban Bank Limited, Alibag, Maharashtra

Case Brief

RBI imposed a monetary penalty on Alibag Co-operative Urban Bank Limited, Alibag by order dated July 24, 2024. The action was taken after a statutory inspection (with reference to March 31, 2023) and a show-cause process. RBI concluded that the bank had not complied with certain directions on ‘Management of Advances-UCBs’, specifically sustaining the charge that it sanctioned gold loans beyond the prescribed regulatory limit under the bullet repayment scheme, and imposed the penalty under the BR Act provisions cited in the release.