The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on the Rupee Co-operative Bank based in Pune.
The Urban Cooperative Bank was found violating the guidelines of the Reserve Bank of India.
Rupee cooperative bank granted term loans to some borrowers much in excess of the limit of Rs ten lakh. The bank was also guilty of sanctioning fresh Cash Credit limit to the existing borrowers in excess of Rs ten lakh in 4 cases, in violation of the operational instructions.
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.
