Reserve Bank of India imposes monetary penalty on Sudha Co-operative Urban Bank Ltd., Regd No.599/TH, Suryapet, Telangana - ଆରବିଆଇ - Reserve Bank of India
Reserve Bank of India imposes monetary penalty on Sudha Co-operative Urban Bank Ltd., Regd No.599/TH, Suryapet, Telangana
The Reserve Bank of India (RBI) has imposed, by an order dated February 15, 2023, a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on Sudha Co-Operative Urban Bank Ltd., Regd No.599/TH, Suryapet, Telangana (the bank) for non-compliance with directions issued by RBI on Board of Directors, Exposure Norms and Statutory / Other Restrictions and Income Recognition, Asset Classification, Provisioning and Other related Matters as applicable to Urban Co-operative Banks. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (AACS), taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Background The inspection reports of the bank based on its financial position as on March 31, 2019, and March 31, 2020, revealed, inter alia, that the bank had extended loans to directors, resorted to ever-greening of Director related loans and breached single borrower exposure limits. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid directions. After considering the bank’s reply and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty. (Yogesh Dayal) Press Release: 2022-2023/1760 |