Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on National Urban Cooperative Bank Ltd, New Kondli, Mayur Vihar, Phase III, Delhi, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violation of RBI directions/guidelines/instructions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI stated that it issued a show-cause notice and examined the bank's written reply before deciding on the penalty.