Case Brief
RBI, by order dated November 13, 2024, imposed a monetary penalty of ₹1.25 lakh on The Rajula Nagrik Sahakari Bank Ltd., Rajula, Dist. Amreli, Gujarat. The penalty followed a statutory inspection as of March 31, 2023 and was based on supervisory findings of non-compliance with RBI directions on loans and advances to directors, relatives, and firms/concerns in which they are interested, as well as maintenance of deposit accounts for primary (urban) co-operative banks. RBI found that the bank had sanctioned cash credit limits where relatives of directors acted as guarantors and had failed to classify certain accounts as inoperative/dormant despite no customer-induced transactions for more than two years. RBI clarified that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 1.25 L
- Entity Type
- Co-operative bank
- Location