Case Brief
What Happened
RBI, by order dated January 06, 2023, imposed a penalty of Rs 2.00 lakh on District Co-operative Bank Limited, Dehradun, Uttarakhand. The penalty was imposed for contravention of section 20 read with section 56 of the Banking Regulation Act, 1949, after NABARD's inspection found that the bank had granted unsecured loans/advances to individuals in which directors of the bank stood as guarantors. RBI considered the bank's reply, submissions at personal hearing, and additional information before concluding that the contravention was substantiated.