Case Brief
By an order dated April 25, 2025, RBI imposed a monetary penalty of ₹2.00 lakh on The Deccan Merchants Co-operative Bank Ltd., Mumbai. The penalty was for non-compliance with RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI said that, based on the statutory inspection and subsequent proceedings, the sustained charge was that the bank had sanctioned director-related loans. 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 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai
- Order Date