The Reserve Bank of India has imposed a monetary penalty of Rs 200,000/- (Rupees Two lakh only) on The Tadpatri Co-operative Town Bank Ltd., Tadpatri, Andhra Pradesh, in exercise of the powers vested in it.
The UCB was found guilty of for violation of the provision of section 6(1)(g) and section 6(1)(k) read with section 56 of Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
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 in the matter and a personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.