Case Brief
RBI imposed a monetary penalty of Rs 2.00 lakh on Uttarkashi Zila Sahkari Bank Ltd., Uttarkashi, by order dated August 23, 2024. The penalty was based on contraventions of section 20(1) and section 26A(2) read with section 56 of the Banking Regulation Act, 1949. RBI stated that the bank sanctioned loans to individuals in cases where one of its directors stood as guarantor, and it did not transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. The action was taken after a statutory inspection by NABARD and consideration of the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Uttarkashi, Uttarakhand