The Reserve Bank of India has imposed a monetary penalty of ₹ 5.00 lakh (Rupees five lakhs only) on Sir M Vishvesvaraya Co-operative Bank Ltd., Bengaluru, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) for granting housing loans of more than ₹ 70.00 lakhs per beneficiary violating directives contained in para 2 of RBI Circular No. UBD.BPD.(PCB).Cir.No.7/09.22.010/2011-12 dated October 31, 2011 and extending donation to a Trust where a Director of the bank was an Administrator violating RBI circular UBD.BPD.(PCB).Cir.No.7/09.72.000/2013-14 dated August 30, 2013.

The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank had submitted a written reply. After considering the facts of the case the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/824