The Reserve Bank of India has, by an order dated January 06, 2023, imposed a monetary penalty of Rs 2.00 lakh on the District Co-operative Bank Limited, Dehradun, Uttarakhand.
The statutory inspection of the bank conducted by NABARD revealed that the bank had granted unsecured loans/advances to individuals wherein Directors of the bank stood as guarantors.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, says RBI.
Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the aforesaid statutory provisions.