Case Brief
By an order dated January 08, 2025, RBI imposed a monetary penalty of Rs 5.00 lakh on Parbhani District Central Co-operative Bank Ltd., Parbhani, Maharashtra. The penalty was imposed after NABARD's statutory inspection and a subsequent show-cause process. RBI found that the bank had sanctioned a director-related loan and failed to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed time, in contravention of Sections 20 and 26A read with Section 56 of the Banking Regulation Act, 1949. RBI noted that the action was based on deficiencies in regulatory compliance and was without prejudice to any other action that may be initiated.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Parbhani, Maharashtra