Case Brief
RBI, by order dated December 04, 2024, imposed a monetary penalty of ₹1.00 lakh on The Halol Mercantile Co-operative Bank Ltd., Dist. Panchmahal, Gujarat. The penalty followed a statutory inspection and supervisory findings that the bank had violated RBI directions relating to donations to trusts/institutions connected with directors and to loans and advances to directors, their relatives, and related firms/concerns. RBI noted that the bank donated to a trust in which a director was interested and sanctioned a loan where a relative of the director was a guarantor. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Gujarat