Case Brief
RBI, by order dated September 22, 2022, imposed a monetary penalty on The Talod Nagarik Sahakari Bank Ltd., Sabarkantha (Gujarat) for contravention of RBI directions on 'Loans and advances to directors etc- directors as surety/guarantors- Clarification'. The inspection of the bank, based on its financial position as on March 31, 2021, found that it had sanctioned credit facilities to individuals where relatives of the bank’s directors stood as guarantors, which RBI treated as non-compliance. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after consideration of the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 2,500
- Entity Type
- Co-operative bank
- Location
- Sabarkantha, Gujarat