Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5 lakh on Hutatma Sahakari Bank Ltd., Walva, Maharashtra after finding non-compliance with RBI directions concerning loans and advances to directors, their relatives, and connected firms/concerns. The bank had sanctioned loans to a relative of its director. RBI said the action followed a statutory inspection, a show-cause notice, and consideration of the bank's reply and oral submissions, and was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.