Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
23 Dec 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Thasra People’s Co-operative Bank Ltd., Thasra, dist. Kheda, Gujarat, following supervisory findings from its inspection with reference to the bank’s financial position as on March 31, 2023. RBI said the bank had not complied with directions relating to loans and advances to directors, their relatives and connected firms/concerns, and the management of advances for UCBs. The sustained violations included sanctioning director-related loans and certain gold loans that exceeded the prescribed Loan-to-Value ratio. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection found the bank had failed to comply with directions on 'Loans and Advances to directors, their relatives and firms/concerns in which they are interested' and 'Management of Advances - UCBs'. The sustained charges included sanctioning director-related loans and sanctioning certain gold loans exceeding the prescribed Loan-to-Value (LTV) ratio. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and address the underlying compliance weaknesses in its lending controls, especially around related-party lending and gold loan LTV limits. The order does not itself suspend operations, but RBI may initiate further action if needed.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Order Date
- 16 Dec 2024
- Effective From
- 16 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank