Rupee Co-operative Bank Ltd., Pune (Maharashtra)- Penalised

Way back in June 2004, RBI vide Lr.No. UBD.CO.BSD(SCB)/01.12/ 12.03.941/2003-04, had issued specific instructions to Rupee Co-operative Bank Ltd., Pune.

Some of the operational instructions were with reference to grant of Term Loans and Cash Credit Limits.

In the statutory inspection of the bank under Section 35 of the Act with reference to its financial position as on March 31, 2011, RBI observed that the bank had violated RBI instructions by granting term loans to some borrowers much in excess of the limit of Rs.10.00 lakh prescribed vide the operational instructions. On top of that, the bank had also sanctioned fresh Cash Credit limit to the existing borrowers in excess of Rs10.00 lakh, in 4 cases, again in violation of the operational instructions.

Hence, Reserve Bank of India has imposed a monetary penalty of Rs5.00 lakh (Rupees Five Lakh only) on the Rupee Co-operative Bank Ltd., Pune (Maharashtra).

The Bank was initially a co-operative society, established way back in 1912. The main founders of the bank were inspired by the work of Late Shri Lokmanya Tilak.

Rupee Co-operative Bank Limited was included in second Schedule to the Reserve Bank of India Act, 1934 vide its notification No.UBD.BR.94/A.9-88/89 dated 18th August 1988.

The word Rupee in the name of the bank stands for the fact that, the initial share capital amount contributed by every shareholder was one Rupee.

The Bank has its geographical presence in the State of Maharashtra, India, with a network of 36 branches plus 5 extension counters.

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