Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Chanasma Commercial Co-operative Bank Ltd., Chanasma, dist. Patan, Gujarat, by order dated December 16, 2024. RBI said the penalty was for non-compliance with directions on loans and advances to directors/related parties and on KYC, after inspection and subsequent proceedings found that the bank had sanctioned director-related loans and had not reviewed the risk categorization of certain accounts at least once every six months. 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 3.00 L
- Entity Type
- Co-operative bank
- Location
- Chanasma, Gujarat