Shree Lodra Nagarik Sahakari Bank Limited

Following statutory inspection and examination of the inspection and risk assessment reports, RBI found that the bank had sanctioned a loan to a relative of one of its directors, sanctioned loans where relatives of directors were guarantors, and breached prudential inter-bank gross exposure and counterparty exposure limits. The penalty was imposed under Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for non-compliance with RBI directions on loans and advances to directors/relatives and placement of deposits with other banks by primary (urban) co-operative banks.

The bank must absorb the monetary penalty; the release does not announce any further operational restriction or corrective deadline. The conduct highlights compliance lapses in related-party lending and inter-bank exposure management, but the action itself only has a financial impact on the bank.