Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Shri Janata Sahakari Bank Ltd., Halol (Gujarat) by an order dated March 26, 2021. The penalty was imposed after a statutory inspection for the bank's financial position as on March 31, 2019 found contraventions of RBI directions on loans and advances to directors, relatives, and firms/concerns in which they are interested, directions on directors acting as sureties/guarantors, and reporting of advances granted to directors and their relatives by primary (urban) co-operative banks. After considering the bank's reply and oral submissions, RBI concluded that the non-compliance was substantiated and warranted penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Halol, Gujarat