Belagavi: The Reserve Bank of India (RBI) has imposed a penalty of ₹2 lakh on Belagavi District Central Cooperative (BDCC) Bank for violations of banking regulations, according to official sources.
For more details : https://www.prajavani.net/district/belagavi/rbi-penalty-bdcc-bank-belagavi-banking-rules-violation-3803018
The order was issued on February 23. The action was taken for non-compliance with provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949, along with failure to adhere to RBI directives concerning gold loans and commercial real estate exposure.
Reasons for Penalty
According to sources, the violations include:
- Sanctioning loans to related parties of directors
- Granting gold loans under the ‘bullet repayment’ scheme beyond prescribed limits
- Extending loans to non-residential commercial real estate projects
The RBI exercised its powers under relevant provisions of the Banking Regulation Act while imposing the penalty.
The penalty pertains to regulatory compliance deficiencies and does not affect the validity of transactions or agreements entered into by the bank with its customers.
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