Case Brief
By an order dated October 21, 2024, RBI imposed a monetary penalty of Rs 2.60 lakh on The Gondia District Central Co-operative Bank Ltd., Maharashtra. The penalty followed a statutory inspection by NABARD and subsequent supervisory proceedings. RBI held that the bank had contravened section 20 read with section 56 of the Banking Regulation Act, 1949 by sanctioning a loan to its director, and had also failed to comply with RBI directions on membership of Credit Information Companies by co-operative banks, specifically by not obtaining membership of three CICs.
Action Snapshot
- Primary Impact
- Fine: Rs 2.60 L
- Entity Type
- Co-operative bank
- Location
- Gondia, Maharashtra
- Order Date