Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 3 lakh on The Sutex Co-operative Bank Ltd., Surat (Gujarat) by order dated September 07, 2021. RBI said the bank had contravened directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, as well as the clarification on loans and advances to directors acting as surety/guarantors. The action followed a statutory inspection, examination of related correspondence, a show-cause notice, the bank's reply, and oral submissions during a personal hearing. RBI stated the penalty was based on regulatory non-compliance and did not pronounce on the validity of any customer transaction or agreement.