The Reserve Bank of India has imposed a monetary penalty on The Yashwant Co-operative Bank Limited, Phaltan, Maharashtra in exercise of the powers vested in it.
The UCB was found guilty of violation of provisions of Banking Regulation Act, 1949 (AACS), directions, instructions and guidelines issued by the Reserve Bank of India relating to individual unsecured advances exposure limit, group borrower limit and submission of compliance to RBI.
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 also made oral 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 the penalty.