Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Rupee Co-operative Bank Ltd., Pune (Maharashtra) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. The penalty followed a statutory inspection under Section 35, which found that the bank had granted term loans and fresh cash credit limits to borrowers beyond the RBI-prescribed ceiling of Rs 10 lakh, including 4 cases of excess cash credit sanctions. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then concluded that the violations were substantiated.