Case Brief
RBI imposed a monetary penalty of ₹50,000 on Shree Co-operative Bank Limited, Vadodara, Gujarat, by order dated August 11, 2023. The penalty was for non-compliance with RBI’s direction on ‘Loans and advances to directors, relatives, firms/concerns in which they are interested’. RBI said its statutory inspection for the bank’s position as on March 31, 2022, and examination of inspection and risk assessment reports, revealed that the bank had sanctioned a loan where the spouse of one of the bank’s directors stood as surety/guarantor. After a show-cause process, the bank’s reply, and oral submissions at personal hearing, RBI held the charge to be substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Vadodara, Gujarat