RBI imposes monetary penalty on The Nasik Merchant’s Co-operative Bank Ltd., Nashik, Maharashtra

Case Brief

By an order dated January 01, 2025, RBI imposed a monetary penalty of ₹15.00 lakh on The Nasik Merchant’s Co-operative Bank Ltd., Nashik, Maharashtra. The penalty was imposed for non-compliance with RBI directions relating to loans and advances to directors, their relatives, and firms/concerns in which they are interested. Following a statutory inspection with reference to the bank’s financial position as on March 31, 2023, RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge of sanctioning director-related loans was sustained. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.