RBI imposed penalty on The Vriddhachalam Co-operative Urban Bank Ltd., Vriddhachalam, 606001
Reserve Bank of India vide Press Release dt 15/05/2018, informed to the public at large that it has imposed a monetary penalty of ₹ 2.00 lakh (Rupees two lakh) on The Vriddhachalam Co-operative Urban Bank Ltd. (No.E 81), 64 South Fort Street, Vriddhachalam, 606001. Reserve Bank of India has imposed this monetary penalty, in exercise of the powers vested in it under the provisions of Section 47A(1)(b), for violation of the directive of the Reserve Bank prohibiting extension of loans and advances to Directors/their relatives as provided in Para 5 of Master Circular UBD.CO.BPD.MC.No.8/12.05.001/2013-14 dated July 1, 2013. 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, Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty. Gist of Para 5: PROHIBITION ON ...