Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Dwarakadas Mantri Nagari Sahakari Bank Ltd., Beed, Dist. Beed under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated its directives/instructions relating to loans and advances to directors, their relatives, and concerns in which they are interested. After a show cause notice, the bank's written reply and personal submissions were considered, but RBI found the violations substantiated and imposed the penalty.