Case Brief
What Happened
The Reserve Bank of India penalised The Ramakrishna Mutually Aided Co-operative Urban Bank Ltd., Nidadavole, 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 found violations of its directives and guidelines on loans and advances to directors and their relatives. After issuing a show-cause notice, considering the bank’s reply, and granting personal hearing, RBI concluded that the breaches were substantiated and imposed a monetary penalty of Rs 1 lakh.