Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹0.50 lakh on Alavi Co-operative Bank Ltd., Vadodara (Gujarat) by order dated January 13, 2021. RBI said the bank contravened its directions on loans and advances to directors, relatives, and firms/concerns in which they are interested. The action followed an inspection based on the bank’s financial position as on March 31, 2019, issuance of a show-cause notice, and consideration of the bank’s reply and oral submissions. RBI clarified that the penalty was for regulatory non-compliance and was not intended to pronounce on the validity of any transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 5,000
- Entity Type
- Co-operative bank
- Location
- Vadodara, Gujarat