Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5 lakh on Hutatma Sahakari Bank Ltd., Walva, Maharashtra after finding non-compliance with RBI directions concerning loans and advances to directors, their relatives, and connected firms/concerns. The bank had sanctioned loans to a relative of its director. RBI said the action followed a statutory inspection, a show-cause notice, and consideration of the bank's reply and oral submissions, and 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 5.00 L
- Entity Type
- Co-operative bank
- Location
- Walva, Maharashtra
- Order Date