RBI Imposes Rs50,000 Penalty on Dr Babasaheb Ambedkar Sahakari Bank for Loan Sanction Violations
Moneylife Digital Team 20 September 2024
The Reserve Bank of India (RBI) has imposed a penalty of Rs50,000  Penalty on Dr Babasaheb Ambedkar Sahakari Bank Ltd from Maharashtra for non-compliance with directions on loans and advances to directors, relatives and firms or concerns in which they are interested.
 
The statutory inspection of Dr Babasaheb Ambedkar Sahakari Bank conducted by the RBI regarding its financial position as of 31 March 2023 confirmed that the charge of sanctioning loans to directors and their relatives was upheld.
 
After considering the facts of the case and the Bank’s reply, RBI concluded that the violations were substantiated and warranted the imposition of a penalty.
 
RBI says, its 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
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