Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Laxmi Vishnu Sahakari Bank Ltd., Ichalkaranji, Maharashtra, following a statutory inspection and supervisory findings of non-compliance with RBI directions on loans and advances to directors, their relatives, and firms or concerns in which they are interested. RBI concluded that the bank had sanctioned a loan to one of its directors, sustained the charge, and levied the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.