Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Karimnagar Co-operative Urban Bank Ltd., Karimnagar, Telangana under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violation related to RBI guidelines/directives on loans and advances to directors and their relatives. RBI had issued a show-cause notice, considered the bank's written reply, and concluded that the contraventions were substantiated, justifying the penalty.