Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on The Kottarakara Co-operative Urban Bank Limited, Kerala, by order dated October 07, 2024. RBI said the bank failed to comply with specific directions issued under the Supervisory Action Framework (SAF), including sanctioning/renewing credit facilities to sectors with high NPA/default levels despite those directions. The action was taken under sections 47A(1)(c), 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection and consideration of the bank's reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Kottarakara, Kerala