Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Nov 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Anuradha Urban Co-operative Bank Ltd., Chikhli, Dist. Buldhana, Maharashtra, by order dated November 16, 2021. RBI said the bank contravened directions issued to urban co-operative banks on Board of Directors and Exposure Norms & Statutory/Other Restrictions by granting loans to relatives of three directors. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI concluded the charge was substantiated following the bank's replies and personal hearing.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after inspection found that the bank had granted loans to relatives of three of its directors in contravention of RBI directions on Board of Directors and Exposure Norms & Statutory/Other Restrictions for urban co-operative banks. RBI concluded the non-compliance was substantiated after considering the bank's replies and oral submissions.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with RBI directions on board-related restrictions and exposure norms. The action has no stated operational ban or business restriction, but it signals ongoing supervisory scrutiny of governance and lending practices.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 16 Nov 2021
- Effective From
- 16 Nov 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank