Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 4.00 lakh on Shree Kadi Nagarik Sahakari Bank Ltd., Kadi (Gujarat) by order dated April 29, 2022. RBI said the bank had violated directions relating to loans and advances to directors, relatives and firms/concerns in which they are interested; loans and advances where directors act as sureties/guarantors; bank finance against shares and debentures for UCBs; and donations to trusts/institutions where directors or relatives hold positions or are interested. The inspection found instances of loans to trusts/firms linked to directors, credit facilities where directors’ relatives were guarantors, credit extended to a stock broker, and a donation to a trust connected to a director’s relative. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then imposed the penalty under the Banking Regulation Act.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location