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


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The Reserve Bank of India (RBI) has slapped a ₹2 lakh penalty on the Thane District Central Co-operative (TDCC) Bank for violating banking regulations. The bank allegedly sanctioned a loan to one of its directors, breaching Sections 20 and 56 of the Banking Regulation Act, 1949.

This action stems from a statutory inspection of the bank by the National Bank for Agriculture and Rural Development (NABARD) as of March 31, 2022. Examination of the inspection report and subsequent communication revealed the director loan violation.

Following a show-cause notice and review of the bank’s response and oral submissions, the RBI concluded that the violation was proven.

This penalty serves as a reminder of the strict regulations governing co-operative banks and the importance of upholding ethical lending practices.

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