The Reserve Bank of India has imposed a monetary penalty on Abhyudaya Mahila Urban Co-operative Bank based in Channapatna, in exercise of the powers vested in it.
The UCB was found violating directives contained in para 3 of Reserve Bank of India Circular No. BPD Cir.50/13.05.00/2002-03 dated April 29, 2003 on “Loans and Advances to Directors, Relatives and Firms/Concerns in which they are Interested”.
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 penalty.