Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Jan 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Rajkot Peoples Co-operative Bank Ltd., Rajkot (Gujarat), by order dated January 18, 2022. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI found that the bank had granted loans to relatives of one of its directors, violating RBI directions on loans and advances to directors, relatives, and firms/concerns in which they are interested.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The penalty was based on inspection findings that the bank had granted loans to relatives of one of its directors, which amounted to contravention of RBI directions on loans and advances to directors, relatives, and firms/concerns in which they are interested.
Operating Impact
The bank must absorb the monetary penalty; no separate operational restriction is described in this release. The action serves as a regulatory enforcement measure for non-compliance with lending-related RBI directions.
Regulatory Basis
- Section 47A(1)(c)
- Section 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 18 Jan 2022
- Effective From
- 18 Jan 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank