Case Brief
What Happened
RBI, by order dated April 10, 2024, imposed a monetary penalty of Rs 75,000 on Indira Mahila Sahakari Bank Limited, Malegaon, Maharashtra. The bank was found to have sanctioned loans to nominal members in excess of the prescribed ceiling, breaching RBI directions on 'Policy and Practice regarding Nominal Membership' and 'Exposure Norms & Statutory/ Other Restrictions - UCBs'. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection and consideration of the bank's reply and oral submissions.