Case Brief
The Reserve Bank of India imposed a monetary penalty on The Limbasi Urban Co-operative Bank Ltd., Limbasi, Dist. Kheda, Gujarat for non-compliance with RBI directions relating to loans and advances to directors, their relatives, and related firms/concerns, including the clarification on directors acting as surety/guarantors. RBI said its inspection found that the bank had sanctioned a loan where a relative of one of the directors stood as guarantor. After considering the bank’s reply and oral submissions, RBI concluded that the contravention was substantiated and warranted a penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Limbasi, Gujarat