Case Brief
RBI imposed a monetary penalty on The Faiz Mercantile Co-operative Bank Ltd., Nasik by order dated March 09, 2022. The penalty was imposed because an inspection found that the bank had granted a loan to a relative of a director, contrary to RBI directions on Board of Directors and Exposure Norms & Statutory/Other Restrictions-UCBs. RBI stated the action was based on deficiencies in regulatory compliance and was not intended to pronounce on the validity of any transaction or agreement with customers.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Nasik, Maharashtra
- Order Date