Case Brief
RBI, by order dated August 05, 2024, imposed a monetary penalty on Nidhi Co-operative Bank Ltd., Ahmedabad, Gujarat for violating its directions on loans and advances to directors, relatives and firms/concerns in which they are interested. RBI said supervisory findings showed non-compliance, and after a show-cause notice, the bank's reply, and oral submissions, it found the charge sustained that loans were sanctioned where relatives of directors acted as guarantors. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat