Case Brief
RBI imposed a monetary penalty of ₹25,000 on The Nawanagar Co-operative Bank Ltd., Jamnagar (Gujarat), by order dated November 09, 2022. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI’s inspection found that the bank had sanctioned a loan where a relative of its director stood as surety/guarantor, violating RBI directions on loans and advances to directors and related surety/guarantor clarifications. RBI stated that the action was based on deficiencies in regulatory compliance and was not meant to pronounce on the validity of any transaction.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Jamnagar, Gujarat