Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on The Mandvi Nagrik Sahakari Bank Limited, Mandvi, District Surat, Gujarat, for non-compliance with RBI directions on 'Management of Advances - UCBs'. Following a statutory inspection and consideration of the bank's reply and personal hearing, RBI held that the bank had failed to ensure end-use of funds with respect to a loan sanctioned by it. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.