The Reserve Bank of India has imposed a monetary penalty of ? 1.00 lakh (Rupees one lakh only) on the Bhavana Rishi Co-operative Urban Bank Ltd., Hyderabad, Telangana, in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949(As Applicable to Co-operative Societies), for violation of Section 20A of Banking Regulation Act, 1949 (AACS) and directives/guidelines of the Reserve Bank on loans and advances to directors and their relatives.
The Reserve bank of India had issued a show-cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.
Ajit Prasad
Assistant General Manager
Press Release: 2014-2015/2265
