Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Baran Nagrik Sahkari Bank Ltd., Baran, Rajasthan by an order dated April 18, 2023. RBI said the bank had contravened Section 35A read with Section 56 of the Banking Regulation Act, 1949 because it failed to comply with directions prohibiting loans, advances, or other financial accommodation to relatives of its directors and also failed to report such instances in the OSS-6 return. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act after a show-cause process.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Baran, Rajasthan