The Reserve Bank of India has imposed a monetary penalty of ` 2.00 lakh (Rupees two lakh only) on The Ankola Urban Co-operative Bank Limited, Ankola, Dist. Uttara Kannada, Karnataka in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violation of the provisions of Section 36(1)(a) of the Banking Regulation Act, 1949 (AACS) relating to sanctioning of unsecured advances in violation of the operational instructions issued to the bank.

The 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 and also personal submissions in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

Ajit Prasad
Assistant General Manager

Press Release : 2010-2011/1481