Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 6.00 lakh on Bijnor Urban Co-operative Bank Limited, Bijnor, by order dated June 14, 2021. RBI said the penalty was for contravention of sections 20 and 35A read with section 56 of the Banking Regulation Act, 1949 and the regulations on guarantees, co-acceptances and letters of credit. The inspection report, based on the bank's financial position as on March 31, 2019, found non-adherence relating to prohibition on director-related loans and issuance of a performance guarantee. After considering the bank's reply and submissions, RBI concluded the charges were substantiated and warranted monetary penalty.