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Agroha Co-operative Urban Bank Ltd

Co-operative bankHyderabad, Telangana

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

7 Jun 2016

Case Brief

The Reserve Bank of India imposed a monetary penalty on Agroha Co-operative Urban Bank Ltd., Hyderabad, Telangana, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violation concerned RBI directives/guidelines on loans and advances to directors and their relatives. RBI had issued a show-cause notice, considered the bank's written reply, and concluded that the violations were substantiated and that penalty was warranted.

Why RBI Acted

Lending normsGovernance oversight

RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated RBI directives/guidelines relating to loans and advances to directors and their relatives; after considering the bank's reply to the show-cause notice, RBI concluded the violations were substantiated and warranted penalty.

Operating Impact

The bank must bear the monetary penalty and remains accountable for compliance with RBI norms on related-party lending. The action does not by itself impose an operational restriction, but it signals regulatory scrutiny over governance and lending practices.

Regulatory Basis

  • Section 47A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

Action Facts

Primary Impact
Fine: Rs 1.00 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank