Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Lunawada Nagrik Sahakari Bank Ltd., Lunawada, Mahisagar District (Gujarat). The penalty was imposed after RBI inspection and review of related correspondence found non-compliance with its directions on loans and advances to directors, relatives, and firms/concerns in which they are interested. RBI issued a show-cause notice, reviewed the bank's reply and hearing submissions, and concluded that the contravention was established under the Banking Regulation Act, 1949.