Case Brief
What Happened
RBI, by order dated December 6, 2024, imposed a monetary penalty on The Udumalpet Co-operative Urban Bank Ltd., Tamil Nadu, after a statutory inspection found non-compliance with RBI directions concerning loans and advances to directors/relatives and exposure norms/statutory restrictions for urban co-operative banks. RBI said the bank had sanctioned a loan to a director’s relative and had also sanctioned loans to nominal members beyond the prescribed regulatory limit. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.