RBI imposes monetary penalty on The Nawanagar Co-operative Bank Ltd., Jamnagar, Gujarat

Case Brief

By an order dated November 12, 2024, RBI imposed a monetary penalty of ₹2.50 lakh on The Nawanagar Co-operative Bank Ltd., Jamnagar, Gujarat. The penalty was for non-compliance with RBI directions relating to loans and advances to directors, relatives and firms/concerns in which they are interested, and financial statements presentation and disclosures. RBI said the bank sanctioned and renewed a loan to a firm where a director’s relative was a guarantor, and failed to disclose the penalty in the Notes to Accounts of its FY2022-23 annual report. The action was taken under the Banking Regulation Act, 1949, after inspection, a show-cause notice, and consideration of the bank’s reply and oral submissions.