Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Dr. Babasaheb Ambedkar Urban Co-operative Bank Limited, Nagpur, Maharashtra, by order dated July 08, 2025. The penalty was imposed for non-compliance with RBI directions relating to loans and advances to directors, relatives, and firms/concerns in which they are interested, as well as specific directions issued under the Supervisory Action Framework (SAF). RBI found that the bank had sanctioned a director-related loan and had not reduced the single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit, as required. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following statutory inspection and consideration of the bank's response and hearing submissions.