Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Chaitanya Co-operative Urban Bank Ltd., Hyderabad, Telangana, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its guidelines/directives on loans and advances to directors and their relatives. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and warranted penalty.