Case Brief
RBI imposed a monetary penalty of ₹4.00 lakh on Shree Lodra Nagarik Sahakari Bank Limited, Lodra, Dist. Gandhinagar, Gujarat, under Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The bank was found to have violated RBI directions concerning loans and advances to directors, their relatives and connected firms/concerns, as well as placement of deposits with other banks by primary (urban) co-operative banks. The specific findings included a loan to a director’s relative, loans where directors’ relatives were guarantors, and breaches of prudential inter-bank gross exposure and counterparty exposure limits.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- Co-operative bank
- Location
- Lodra, Gujarat