Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on Bedkihal Urban Cooperative Bank Ltd., Bedkihal, Karnataka under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was levied because the bank violated RBI directives/guidelines on exposure norms. RBI issued a show-cause notice, the bank sought a personal hearing, and after considering the bank’s reply and hearing, RBI held the violations substantiated and deserving of penalty.