RBI imposes monetary penalty on Shrikrishna Co-operative Bank Limited, Umrer, Maharashtra

Case Brief

By order dated July 26, 2024, RBI imposed a penalty on Shrikrishna Co-operative Bank Limited, Umrer, Maharashtra for non-compliance with directions governing loans and advances to directors, their relatives, and firms/concerns in which they are interested. The statutory inspection, conducted with reference to the bank's financial position as on March 31, 2023, found that director-related loans (fund and non-fund based) had been sanctioned to companies/concerns where the directors or their relatives had an interest. RBI invoked section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.