Case Brief
By an order dated May 09, 2025, RBI imposed a monetary penalty of ₹1.00 lakh on Mangalore Co-operative Town Bank Ltd., Mangalore, Karnataka. The penalty was imposed after RBI’s statutory inspection and subsequent supervisory review found non-compliance with directions relating to loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI stated that the sustained charge was that the bank had sanctioned director-related loans. The action was taken 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 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mangalore, Karnataka