Case Brief
What Happened
By an order dated June 30, 2023, RBI imposed a monetary penalty of ₹1.00 lakh on Ranuj Nagarik Sahakari Bank Ltd., Patan (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI’s inspection found that the bank had sanctioned a loan where a relative of one of its directors stood as surety/guarantor, in contravention of RBI directions on loans and advances to directors etc. RBI stated that the action was based on deficiencies in regulatory compliance and not intended to pronounce on the validity of any transaction or agreement.