RBI imposes Rs 2 lakh penalty on Thane District Central Co-operative Bank for sanctioning loan to its director

Thane: The Reserve Bank of India (RBI) has said it has imposed a penalty of Rs 2 lakh on the Thane District Central Co-operative (TDCC) Bank for alleged violation of banking regulations by sanctioning loan to one of the directors of the bank.

The RBI gave this information in a release issued by its Chief General Manager Yogesh Dayal on Friday.

In an order issued on November 28, the RBI imposed a penalty of Rs 2 lakh on the TDCC Bank for the violation of sections 20 and 56 of the Banking Regulation (BR) Act, 1949, it said.

The penalty was imposed under the powers conferred on the RBI under sections of the BR Act.

The statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2022, and examination of the inspection report and all the related correspondence, revealed that the TDCC Bank had sanctioned a loan to one of its directors, the release said.

A show-cause notice was then issued to the bank. After considering the bank's reply to the notice and oral submissions made by it during the personal hearing, the RBI came to the conclusion that the charge of contravention of the statutory provisions was substantiated, a release issued by said.