The Reserve Bank of India has imposed a monetary penalty on The Chittoor Co-operative Town Bank Ltd., Chittoor, Andhra Pradesh, in exercise of the powers vested in it.
The UCB was found guilty of violation of Reserve Bank of India directives and guidelines on loans and advances to directors and their relatives.
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 personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.