Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹4.00 lakh on The Konark Urban Co-operative Bank Limited, Thane, Maharashtra under Section 47A(1)(b) read with Section 46(4)(i) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was imposed after RBI found that the bank had violated its 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.