Case Brief
RBI issued an order dated July 24, 2024 imposing a monetary penalty of ₹4.00 lakh on The Hindusthan Co-operative Bank Limited, Mumbai, Maharashtra. The penalty was imposed after RBI's statutory inspection and subsequent supervisory process found non-compliance with directions relating to exposure norms, borrower exposure limits, and KYC norms. RBI sustained charges that the bank sanctioned loans to nominal members beyond prescribed limits, breached single borrower exposure limits, and allotted multiple Unique Customer Identification Codes to customers. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra