Case Brief
What Happened
By order dated December 19, 2023, RBI imposed a monetary penalty on The Stambhadri Co-operative Urban Bank Ltd., Khammam, Telangana. The bank was found non-compliant with RBI directions on 'Board of Directors - UCBs' and on 'Loans and advances to directors, their relatives, and firms/concerns in which they are interested', after RBI's statutory inspection revealed that the bank had extended loans to a director and directors’ relatives. RBI concluded that the charge was substantiated and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.