Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Vyavsaik Sahakari Bank Limited, Raipur, by order dated February 11, 2022. RBI said the bank failed to comply with directions on Exposure Norms and Statutory/Other Restrictions on UCBs and Board of Directors - UCBs. The inspection revealed excess inter-bank exposure and donations that were either linked to a trust where a director was interested or exceeded the prescribed limit. RBI stated the action was taken under the Banking Regulation Act, 1949, after considering the bank's reply and oral submissions.