Case Brief
RBI, by order dated October 10, 2024, imposed a monetary penalty of Rs 1.00 lakh on Nazareth Urban Co-operative Bank Ltd., Tamil Nadu. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection and subsequent show-cause proceedings. RBI found that the bank had sanctioned loans to a relative of a director, in breach of its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Tamil Nadu
- Order Date