RBI imposes penalty on Guntur Coop Bank for non-compliance
THE Reserve Bank of India (RBI) has, by an order dated February 3, imposed a penalty of Rs 5 lakh on The Guntur Women Cooperative Urban Bank Ltd.
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Hyderabad: THE Reserve Bank of India (RBI) has, by an order dated February 3, imposed a penalty of Rs 5 lakh on The Guntur Women Cooperative Urban Bank Ltd., Guntur, for contravention of the directions issued by RBI on prohibition of loans and advances to Directors or their relatives, income recognition and asset classification and grant of loans against security of gold jewellery, according to a media release from the bank.
The penalty has been imposed on the bank in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949, for grant of loans to relatives of directors, divergence in income recognition and asset classification and violation of loan to value and repayment guidelines in respect of gold loans, revealed during the statutory inspection of the bank with reference to its financial position as on March 31, 2018 and March 31, 2019.
