Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Harihareshwar Sahakari Bank Ltd., Wai, Dist: Satara 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 imposed because the bank violated Section 20 of the BR Act, 1949 (AACS) by granting loans against property owned by directors. RBI issued a show-cause notice, considered the bank's written and oral submissions, and concluded that the violations were substantiated.