The Reserve Bank of India has imposed a monetary penalty of Rs.5.00 lakh (Rupees Five Lakh only) on The Arunachal Pradesh State Co-operative Apex Bank  Ltd., Arunachal Pradesh in exercise of powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) for granting unsecured loans to the bank's directors and their relatives, in contravention of Section 20(1)(b) of the Act, ibid.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. Based on the reply, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty. Accordingly, it penalised the bank.

J.D. Desai
Assistant Manager

Press Release : 2009-2010