The Reserve Bank of India has imposed monetary penalty of Rs one lakh on The Model Co-operative Urban Bank based in Hyderabad, Telangana, in exercise of the powers vested in it.
The UCB is guilty of violation of the Reserve Bank of India directives and guidelines 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.