Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat by order dated July 27, 2021. The penalty was imposed after RBI's statutory inspection and review of related records found non-compliance with directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI issued a show-cause notice, considered the bank's reply and submissions, and then held the charge substantiated under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mehsana, Gujarat