Case Brief
RBI imposed a monetary penalty on The Deola Merchants’ Co-operative Bank Ltd., Nashik, Maharashtra, by an order dated November 11, 2021. The bank was found to have granted a CC loan to a relative of one of its directors, violating RBI directions issued to Urban Co-operative Banks on Board of Directors and Exposure Norms. RBI said the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Nashik, Maharashtra
- Order Date