Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Manmad Urban Co-operative Bank Ltd., Manmad, Maharashtra, following a statutory inspection and supervisory review. RBI found non-compliance with its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, and specifically sustained the charge that the bank had sanctioned loans to the relative of its director. 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 1.00 L
- Entity Type
- Co-operative bank
- Location
- Manmad, Maharashtra
- Order Date