The Reserve Bank of India has imposed a monetary penalty of Rupees five Lakh on the Bharath Co-operative Bank Ltd., Bangalore, Karnataka.
The Urban Cooperative Bank was found violating Reserve Bank of India’s instructions on sanctioning/renewing of loans and advances to directors, their relatives and firms/concerns in which the directors are interested.
The Bank is also guilty of suppressing of such information by not reporting the same in the relevant quarterly statement submitted to the Reserve Bank of India and also for furnishing false information to the Inspecting Officer of Reserve Bank.
The Reserve Bank of India had issued a Show Cause Notice to the bank in response to which the bank submitted a written reply.
After considering the facts of the case, the bank’s reply and also personal submissions in the matter, RBI came to the conclusion that the violation was substantiated and warranted imposition of penalty.