Case Brief
By an order dated July 16, 2025, RBI imposed a monetary penalty of Rs 6 lakh on Motiram Agrawal Jalna Merchants Co-operative Bank Limited, Jalna, Maharashtra. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, and a show-cause process in which RBI found sustained charges of non-compliance. The bank had sanctioned director-related loans and loans and advances to connected borrowers beyond the applicable group exposure limit, contrary to RBI directions on loans and advances to directors/relatives/firms and on limits on exposure to single and group borrowers/parties and large exposures. RBI stated that the penalty is based on regulatory compliance deficiencies and does not pronounce on the validity of the underlying transactions.
Action Snapshot
- Primary Impact
- Fine: Rs 6.00 L
- Entity Type
- Co-operative bank
- Location