Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Shree Mahabaleshwar Co-operative Bank Ltd., Karnataka, by order dated October 29, 2024. The penalty was issued after RBI found non-compliance with its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI stated that the bank had sanctioned multiple loans to relatives of directors, and the penalty was imposed 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 5.00 L
- Entity Type
- Co-operative bank
- Location
- Karnataka
- Order Date