Case Brief
RBI, by order dated December 13, 2024, imposed a monetary penalty of ₹2.00 lakh on Shri Janata Sahakari Bank Ltd., Halol, Dist. Panchmahal, Gujarat. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection and show-cause process found non-compliance with RBI directions on loans and advances to directors and related parties, and on placement of deposits with other banks by primary urban co-operative banks. RBI sustained charges that the bank had sanctioned director-related loans and breached the prudential inter-bank (gross) exposure limit.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Halol, Gujarat