The Reserve Bank of India has imposed a monetary penalty on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana.
The UCB was found guilty of non-compliance with directions issued by the RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’.
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, clarified RBI.
The penalty is to the tune of Rs one lac.