Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Manipal Co-operative Bank Ltd., Manipal, Karnataka under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank violated its directives/instructions by granting loans for real estate purposes beyond the single-party exposure limit of 15% of capital funds and beyond the real estate exposure limit of 15% of deposits. RBI issued a show-cause notice, considered the bank's written reply and personal submissions, and concluded that the violations were substantiated and warranted the penalty.