Case Brief
RBI, by an order dated October 13, 2023, imposed a monetary penalty of Rs 50,000 on The Khambhat Nagarik Sahakari Bank Ltd., Khambhat, Gujarat. The bank was found to have sanctioned loans where a relative of one of its directors stood as guarantor, breaching RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, along with the clarification on directors acting as sureties/guarantors. RBI stated the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Khambhat, Gujarat