New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Under RBI's penalty directives, which cooperative bank

    faced the highest fine of Rs. 5 lakhs, and what was the primary reason for this penalty?
    A Sree Charan Souhardha Co-operative Bank Ltd. for not classifying loan accounts properly. Correct Answer Incorrect Answer
    B Sahyog Urban Co-operative Bank Ltd. for not transferring funds to the Depositor Education and Awareness Fund. Correct Answer Incorrect Answer
    C Shree Mahabaleshwar Co-operative Bank Ltd. for lending to directors' relatives. Correct Answer Incorrect Answer
    D Tura Urban Co-operative Bank Ltd. for unauthorized capital expenditure. Correct Answer Incorrect Answer
    E Jambusar People’s Co-operative Bank Ltd. for failing to submit data to CICs. Correct Answer Incorrect Answer

    Solution

    Shree Mahabaleshwar Co-operative Bank Ltd. in Karnataka was fined ₹5 lakh, the highest among the listed penalties, primarily for providing loans to relatives of directors, which is against RBI's lending norms.

    Practice Next