Case Brief
What Happened
RBI imposed a monetary penalty of ₹3.00 lakh on The Cumbum Co-operative Town Bank Ltd., Cumbum, Prakasam District, Andhra Pradesh. The penalty was levied for non-adherence to RBI directions on Frauds - Classification and Reporting and Board of Directors - UCBs. RBI said the inspection report (based on the bank's financial position as of March 31, 2020) revealed non-reporting of frauds to RBI and sanctioning of loans and advances to directors and firms owned by directors' relatives. After a notice, the bank's reply and oral submissions were considered, and RBI concluded the charge was substantiated.