Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Chhapi Nagarik Sahakari Bank Ltd., Banaskantha, Gujarat by order dated September 18, 2023. RBI said the bank failed to comply with its directions on loans and advances to directors, relatives, and firms/concerns in which they are interested. The breach arose from a statutory inspection that found the bank had sanctioned a loan to a relative of one of its directors. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.