Karad Urban Co-operative Bank Ltd situated in Karad was penalized by the Reserve Bank of India. The RBI has imposed a monetary penalty of Rupees five lakh for violation of guidelines of the Reserve Bank of India.
The bank had violated RBI instructions of informing shifting of its branch from one place to another.
The Karad Urban Cooperative Bank shifted its Market Yard Branch, Sangli from 94/A, Market Yard, Sangli-416416 to C.S.No.705/A, `Rajratna Heights’, Miraj Sangli Service Road, Chandani Chowk Corner, Sangali-416416, which involved change in Municipal Ward No.35 to 50, for which no prior permission was obtained from RBI.
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 violation was substantiated and warranted imposition of the penalty.