Satara (Maharashtra) [India], Mar. 21 : The Reserve Bank of India (RBI) on Tuesday imposed a monetary penalty of Rs. 2 lakh on Harihareshwar Sahakari Bank Ltd. here for violating provisions relating to granting loans against property owned by directors. The Central Bank imposed penalty in exercise of the powers vested in it under the provisions of Section 47 A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies).
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.
After considering the facts of the case and the bank's reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
Source: ANI
