Case Brief
RBI, by order dated February 24, 2025, imposed a monetary penalty of Rs 1.00 lakh on The Lasalgaon Merchants Co-operative Bank Ltd., Nashik, Maharashtra. The penalty was imposed after a statutory inspection and a show-cause process in which RBI found that the bank had sanctioned additional credit facilities to certain borrowers for repaying their existing loans, contrary to RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs. RBI stated that the action was taken 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
- Nashik, Maharashtra