Case Brief
By order dated November 26, 2021, RBI imposed a monetary penalty of Rs 1.00 lakh on The Modasa Nagarik Sahakari Bank Ltd., Aravalli, Gujarat. The action followed a statutory inspection with reference to the bank's financial position as on March 31, 2019, which revealed non-compliance with RBI directions on loans and advances to directors, relatives, and firms/concerns in which they are interested. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and concluded that the charge was substantiated under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Modasa, Gujarat
- Order Date