Case Brief
By an order dated October 21, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on Prerna Nagari Sahakari Bank Limited, Aurangabad, Maharashtra. The penalty was imposed after a statutory inspection and show-cause proceedings, which found that the bank had sanctioned a loan to a firm in which a relative of a director was interested, and the director also stood as guarantor for the loan. RBI cited non-compliance with its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Aurangabad, Maharashtra