Case Brief
By an order dated March 03, 2025, RBI imposed a monetary penalty of ₹50,000 on The A.P. Raja Rajeswari Mahila Co-operative Urban Bank Ltd., Hyderabad. The penalty followed a statutory inspection and subsequent show-cause proceedings, after RBI found that the bank had sanctioned gold loans under the bullet repayment scheme beyond the prescribed regulatory limit, contrary to directions on ‘Management of Advances – UCBs’. 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 50,000
- Entity Type
- Co-operative bank
- Location
- Hyderabad
- Order Date