Case Brief
What Happened
RBI imposed a monetary penalty on The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad by order dated March 04, 2024. The bank was found to have contravened section 26A(2) read with section 56 of the Banking Regulation Act, 1949 and RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. The specific lapses cited were failure to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period and renewal of two advances to a company in which a relative of a bank director was interested as a major shareholder. RBI stated that the penalty was based on supervisory findings from the statutory inspection as on March 31, 2022 and was without prejudice to any other action that may be initiated.