The Navnirman Co-operative Bank Ltd., Ahmedabad, Gujarat

RBI imposed a monetary penalty after a statutory inspection and examination of correspondence found that The Navnirman Co-operative Bank Ltd., Ahmedabad, Gujarat had sanctioned loans in which a relative of a director stood as guarantor. This was treated as non-compliance with RBI directions on 'Loans and Advances to directors, relatives and firms/concerns in which they are Interested' read with 'Loans and Advances to Directors etc. - Directors as surety/guarantors – Clarification'. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the ₹1 lakh penalty and comply more strictly with RBI’s lending norms going forward, especially restrictions around loans involving directors, relatives, and related guarantors. The order does not invalidate any customer transaction, but it signals regulatory non-compliance and increased compliance scrutiny.