Key Points
The Reserve Bank of India (RBI) has imposed a Rs. 75,000 penalty on the Rajapalayam Co-operative Urban Bank for non-compliance with directions relating to loans and advances to directors, their relatives, and firms and concerns in which they are interested...
According to a release from RBI, the bank had extended loans to the relatives of directors and sanctioned loans to nominal members in excess of the prescribed ceiling...
RBI said that it found, inter alia, that the bank had violated the provisions of section 47A (1) (c) of the Banking Regulation Act, 1949, by sanctioning loans to nominal members in excess of the prescribed ceiling..
