Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Rajkot Peoples Co-operative Bank Ltd., Rajkot (Gujarat), by order dated January 18, 2022. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI found that the bank had granted loans to relatives of one of its directors, violating RBI directions on loans and advances to directors, relatives, and firms/concerns in which they are interested.