The Reserve Bank of India has imposed a monetary penalty of Rs seventy five thousand on Peoples Co-operative Bank Ltd. Deulgaonraja, Buldhana in exercise of the powers vested in it.
The UCB was found guilty of violation of provisions of Section 20 of the Banking Regulation Act,1949 (As applicable to Co-operative Societies) relating to ‘Prohibition of banks from granting any loan or advance to any of its Directors’ and for misreporting under XBRL reporting system.
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 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.