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RBI Fines TDCC Bank Rs 2 Lakh For Approving A Loan To Its Director

The Reserve Bank of India (RBI) has issued a Rs 2 lakh penalty on the Thane District Central Co-operative (TDCC) Bank for allegedly violating banking norms by granting a loan to one of the directors of the bank.

This information was provided by the RBI in a communique published by Chief General Manager Yogesh Dayal on Friday.

In a statement, “The RBI slapped a penalty of Rs 2 lakh on the TDCC Bank in an order issued on November 28 for violating sections 20 and 56 of the Banking Regulation (BR) Act, 1949”.

The penalty was levied under the RBI’s authority granted by provisions of the BR Act.

“The statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) regarding its financial position as of March 31, 2022, and examination of the inspection report and all the related correspondence, revealed that the TDCC Bank had sanctioned a loan to one of its directors”, the statement reads.

It went on to say, “A show-cause notice was then issued to the bank. After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, the RBI concluded that the charge of contravention of the statutory provisions was substantiated”.

Also read: France Grounds A Plane Carrying More Than 300 Indian Passengers

Spriha Rai

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