The Reserve Bank of India has imposed a monetary penalty on Sri Basaveshwar Co-operative Bank Ltd., BasavanBagewadi, Bijapur, in exercise of the powers vested in it.
The UCB was found guilty of violating RBI directives/guidelines by sanctioning loans to the director/relative of director of the bank.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank sought personal hearing.
After considering the facts of the case and bank’s representation in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of monetary penalty.