The
Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rs. five
lakh only) on the Indira Sahakari bank Ltd., Dhule, Maharastra for violation of
Reserve bank of India's directive on credit exposure limits for individual/ group
borrower. The penalty was imposed in exercise of 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). The
Reserve Bank of India had issued a show cause notice to the bank, in response
to which the bank submitted a written reply. Based on the reply and the action
taken by the bank in this regard, the Reserve Bank of India come to the conclusion
that the violation was substantiated and warranted imposition of penalty. Accordingly,
it penalised the bank.
Ajit
Prasad
Manager Press
Release : 2007-2008/383 |