The Reserve Bank of India has imposed a monetary penalty on Millath Co-operative Bank Limited, Davangere in exercise of the powers vested in it.
The UCB was found guilty of violating RBI directives and guidelines by sanctioning loans and advances to directors and their relatives, vehicle loans/staff loans without documents, not reporting cash transactions of above ? 10.00 lakh per month in aggregate to Government of India, Financial Intelligence Unit, New Delhi.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank sought personal hearing.
After considering the facts of the case and bank’s representation in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of monetary penalty.
