Case Brief
What Happened
By an order dated June 4, 2026, RBI imposed a monetary penalty of Rs 50,000 on The Amravati Merchants Sahakari Bank Ltd., Amravati, Maharashtra. The penalty was levied after statutory inspection and supervisory review found non-compliance with RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI issued a show-cause notice, considered the bank's written and oral submissions, and concluded that the charge relating to sanction of certain director-related loans was sustained. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.