The Shirpur Peoples Co-operative Bank Ltd., Dhule (Maharashtra)

RBI imposed a monetary penalty after a statutory inspection and review of the risk assessment report and related correspondence found that the bank had sanctioned loans to firms in which director’s relatives were interested. RBI concluded this constituted non-compliance with its directions on Exposure Norms & Statutory Other Restrictions-UCBs and Board of Directors-UCBs, and that the charge was substantiated after the bank’s reply and oral submissions. 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 penalty and continue complying with RBI’s exposure and governance directions. The order does not itself invalidate customer transactions, but it underscores ongoing supervisory scrutiny over lending to related parties and board-related compliance.