The Reserve Bank of India has imposed a monetary penalty of Rs.1.00 lakh (Rupees one lakh only) on Shri Parola Urban Co-operative Bank Ltd., Jalgaon, Maharashtra for violation of Reserve Bank of India's directive on credit exposure limits for individual/group borrowers and loans and advances to directors and their relatives respectively. The penalty was imposed 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).

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.

G. Raghuraj
Deputy General Manager

Press Release : 2007-2008/784