Case Brief
By an order dated December 07, 2023, RBI imposed a monetary penalty of ₹5.00 lakh on The Sankheda Nagarik Sahakari Bank Limited, Sankheda, Gujarat. The penalty was levied for non-compliance with RBI directions relating to loans and advances to directors, their relatives and firms/concerns in which they are interested, as well as directions on directors acting as sureties/guarantors and placement of deposits with other banks by primary urban co-operative banks. RBI said its inspection found that the bank sanctioned loans where relatives of directors stood as guarantors and also breached the prescribed inter-bank gross exposure limit and prudential inter-bank counterparty exposure limit. The action was taken 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 5.00 L
- Entity Type
- Co-operative bank
- Location