RBI imposes Rs 2 lakh penalty on TDCC Bank for sanctioning loan to its director

The Reserve Financial institution of India (RBI) has mentioned it has imposed a penalty of Rs 2 lakh on the Thane District Central Co-operative (TDCC) Financial institution for alleged violation of banking rules by sanctioning mortgage to one of many administrators of the financial institution.

The RBI gave this info in a launch issued by its Chief Basic Supervisor Yogesh Dayal on Friday.

In an order issued on November 28, the RBI imposed a penalty of Rs 2 lakh on the TDCC Financial institution for the violation of sections 20 and 56 of the Banking Regulation (BR) Act, 1949, it mentioned.

The penalty was imposed underneath the powers conferred on the RBI underneath sections of the BR Act.

The statutory inspection of the financial institution performed by the Nationwide Financial institution for Agriculture and Rural Growth (NABARD) on the subject of its monetary place as on March 31, 2022, and examination of the inspection report and all of the associated correspondence, revealed that the TDCC Financial institution had sanctioned a mortgage to one in all its administrators, the discharge mentioned.

A show-cause discover was then issued to the financial institution. After contemplating the financial institution’s reply to the discover and oral submissions made by it in the course of the private listening to, the RBI got here to the conclusion that the cost of contravention of the statutory provisions was substantiated, a launch issued by mentioned.