Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Konark Urban Co-operative Bank Limited, Thane, Maharashtra under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed violations of RBI instructions/guidelines relating to director-related loans. RBI had issued a show cause notice, considered the bank's written reply and oral submissions, and concluded that the violations were substantiated, justifying the penalty.