Case Brief
RBI, by order dated September 18, 2023, imposed a monetary penalty of Rs 2.00 lakh on Vadnagar Nagarik Sahakari Bank Ltd., Vadnagar, Gujarat for contravention of RBI directions on loans and advances to directors, their relatives and firms/concerns in which they are interested, as well as on interest rate on deposits. The bank’s statutory inspection for its position as on March 31, 2022 found that it had sanctioned a loan where a relative of one of its directors stood as guarantor and had not paid interest on matured term deposits from maturity until repayment at the applicable rate. RBI concluded that the contraventions were substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Vadnagar, Gujarat