Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar, Dist. Hingoli. The penalty was imposed because the bank failed to comply with RBI directions on director-related loans, as revealed in a statutory inspection with reference to its financial position as on March 31, 2017. RBI issued a show-cause notice, considered the bank's reply, and concluded that the violations were established under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (as applicable to cooperative societies).
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Basmatnagar, Maharashtra