Case Brief
RBI imposed a monetary penalty on Shihori Nagarik Sahakari Bank Ltd., Shihori, Dist. Banaskantha, Gujarat by order dated October 04, 2023. The bank was found non-compliant with RBI directions relating to loans and advances to directors/related parties, directors acting as sureties/guarantors, and placement of deposits with other banks by primary (urban) co-operative banks. RBI's inspection revealed that the bank sanctioned loans where relatives of directors stood as guarantors and breached the prescribed inter-bank counterparty exposure limit. The penalty was imposed under Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Shihori, Gujarat