The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh (Rupees five lakhs only) on Sir M Vishvesvaraya Co-operative Bank Ltd., Bengaluru, in exercise of the powers vested in it.
The UCB was accused of granting housing loans of more than Rs 70.00 lakhs per beneficiary violating directives of RBI issued in 2011. It extended donation to a Trust where a Director of the bank was an Administrator in 2013.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank had submitted a written reply.
After considering the facts of the case the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.
