New Delhi [India], Feb 17 : The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs. 2 lakh on Janata Urban Co-operative Bank Ltd., district Satara in exercise of violation of the instructions and guidelines of the RBI. The apex bank imposed the penalty under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies).
During the financial year 2013-14 the bank’s credit exposure towards housing or real estate or commercial real estate formed 18.8 percent of the preceding year’s net total assets thus exceeding the limit of 15 percent prescribed in terms of RBI circular dated July 01, 2013.
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply and further submissions thereon. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of the penalty. (ANI)