The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on the Sahebrao Deshmukh Co-operative Bank Ltd., Mumbai in exercise of the powers vested in it.
The UCB was found guilty of violations of the instructions and directives of the Reserve Bank of India on loan 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 submitted a written reply and further submissions thereon.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.