Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on Noida Commercial Co-operative Bank Ltd., Ghaziabad, Uttar Pradesh, by order dated July 30, 2021. RBI said the bank contravened sections 23 and 35A read with section 56 of the Banking Regulation Act, 1949, and violated RBI regulations on Exposure Norms and norms on Board of Directors-UCB in relation to director-related loans. The inspection report for the bank, based on its financial position as on March 31, 2019, also noted deficiencies relating to opening of a new place of business. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 after considering the bank's response and submissions.