Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Durga Co-operative Urban Bank Ltd., Vijaywada, Andhra Pradesh 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 directives and guidelines on loans and advances to directors and their relatives. After a show-cause notice, the bank's written reply, and a personal hearing, RBI concluded the violations were substantiated and warranted penalty.