Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹0.50 lakh on Jagruti 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). The penalty was levied after RBI found that the bank had violated its directives and guidelines on loans and advances to directors and their relatives. RBI had issued a show-cause notice, considered the bank's written reply and personal hearing, and concluded that the violations were substantiated.