Case Brief
By an order dated April 16, 2024, RBI imposed a monetary penalty of ₹43.30 lakh on Rajkot Nagarik Sahakari Bank Ltd., Rajkot. The penalty was based on findings from a statutory inspection conducted with reference to the bank's financial position as on March 31, 2022, which identified non-compliance with RBI directions relating to loans and advances to directors and their interested firms, opening of savings bank accounts for certain ineligible bodies/organizations, and maintenance of deposit accounts. RBI stated that the sustained charges included loans granted to firms/concerns in which the bank's directors were interested, opening savings deposit accounts of certain ineligible entities, and penal charges levied in certain inoperative accounts. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and is without prejudice to any other action RBI may initiate.
Action Snapshot
- Primary Impact
- Fine: Rs 43.3 L
- Entity Type
- Co-operative bank
- Location