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

Case Brief

RBI, by order dated September 30, 2024, imposed a monetary penalty of Rs 2 lakh on The Kolhapur Urban Co-operative Bank Limited, Kolhapur, Maharashtra. The penalty was imposed after a statutory inspection and supervisory review found non-compliance with RBI directions relating to loans and advances to directors, their relatives, and firms/concerns in which they are interested. Following a show-cause notice, the bank’s reply and oral submissions were considered, but RBI concluded that the charge of sanctioning director-related loans was sustained. The penalty was levied under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.