Case Brief
RBI, by an order dated October 13, 2022, imposed a monetary penalty of Rs 25,000 on The Meghraj Nagarik Sahakari Bank Ltd., Aravalli (Gujarat). The penalty was based on inspection findings that the bank had sanctioned six loans where directors’ relatives stood as surety/guarantors, contrary to RBI directions on loans and advances to directors and related clarifications. RBI concluded the non-compliance was substantiated after considering the bank’s reply and oral submissions, and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Aravalli, Gujarat
- Order Date