Case Brief
By an order dated October 30, 2023, RBI imposed a monetary penalty of Rs 1.50 lakh on Patan Nagarik Sahakari Bank Ltd., Patan, Gujarat for non-compliance with RBI directions relating to loans and advances to directors, relatives and firms/concerns in which they are interested, as well as placement of deposits with other banks by primary urban co-operative banks. RBI said the statutory inspection revealed that the bank sanctioned a loan where a relative of a director stood as guarantor and also breached the prudential 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 1.50 L
- Entity Type
- Co-operative bank
- Location
- Patan, Gujarat