Reserve Bank of India fines bank Rs 1 lakh for violation
The Bhavana Rishi Co-Operative Urban Bank Limited was fined
By : DC Correspondent
Update: 2015-04-24 06:59 GMT
Hyderabad: The Reserve Bank of India has imposed a penalty of Rs 1 lakh on the Bhavana Rishi Co-Operative Urban Bank Limited, Hyderabad, for violation of the the Banking Regulation Act, 1949, and directives/guidelines of the Reserve Bank of India regarding loans and advances to directors and their relatives.
In a press release general manager R. Bhookya said the RBI had issued a show-cause notice to the bank, in response to which the bank submitted a written reply. The bank violated Section 20(a) of the Banking Act which deals with restriction on giving loans.
After considering the case and the bank’s reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted penalty.