RBI imposes monetary penalty on Shree Kadi Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat

Case Brief

By an order dated June 26, 2025, RBI imposed a monetary penalty on Shree Kadi Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat. The penalty was levied after a statutory inspection and subsequent supervisory proceedings found that the bank had breached RBI directions relating to donations to trusts/institutions connected to directors or their relatives, and to management of advances for urban co-operative banks. RBI specifically noted that the bank donated an amount to a trust in which a director’s relative was interested, and failed to ensure end-use of funds for certain loans it had sanctioned. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.