The Reserve Bank of India (RBI) disclosed a penalty of Rs 2 lakh imposed on the Thane District Central Co-operative (TDCC) Bank for allegedly breaching banking regulations by approving a loan for one of its directors.
Yogesh Dayal, the Chief General Manager at RBI, conveyed this information through a release on Friday.
As per the RBI's order dated 28 November, a penalty of Rs 2 lakh was levied on the TDCC Bank for violating sections 20 and 56 of the Banking Regulation (BR) Act, 1949.
This penalty was enacted under the authority vested in the RBI by the BR Act.
Upon conducting a statutory inspection of the bank's financial status as of 31 March 2022, carried out by the National Bank for Agriculture and Rural Development (Nabard), it was discovered that the TDCC Bank had approved a loan for one of its directors, the release explained.
Following this revelation, a show-cause notice was issued to the bank. After reviewing the bank's response to the notice and considering oral arguments made during the personal hearing, the RBI concluded that the allegation of breaching statutory provisions was validated, as per the issued release.