Mumbai: The Reserve Bank of India (RBI) has taken action against three cooperative banks in Gujarat, imposing monetary penalties for non-compliance with its directives. The central bank has fined three banks, namely Shree Lodra Nagarik Sahakari Bank Limited in Gandhinagar, Malpur Nagarik Sahakari Bank Limited in Aravalli, and Limbasi Urban Co-operative Bank Ltd. in Kheda.

The RBI issued orders on November 6th specifying the penalties imposed on these banks, as follows:

1. Shree Lodra Nagarik Sahakari Bank Limited, Lodra, Dist. Gandhinagar

– Monetary Penalty: ₹4.00 lakh (Rupees Four lakh only)

– Reasons for penalty: (i) Sanctioned a loan to a relative of one of its directors; (ii) Sanctioned loans wherein relatives of its directors stood as guarantors; (iii) Breached the prudential inter-bank gross exposure limit; and (iv) Breached the prudential inter-bank counterparty exposure limit.

2. Malpur Nagarik Sahakari Bank Limited, Malpur, Dist. Aravalli

– Monetary Penalty: ₹3.50 lakh (Rupees Three lakh Fifty thousand only)

– Reasons for penalty: (i) Breached the prudential inter-bank gross exposure limit; and (ii) Breached the prudential inter-bank counterparty exposure limit.

3. The Limbasi Urban Co-operative Bank Ltd., Dist. Kheda

– Monetary Penalty: ₹25,000/- (Rupees Twenty-Five thousand only)

– Reason for penalty: Sanctioned a loan where a relative of one of the directors of the bank stood as guarantor.

These actions result from the results of statutory inspections conducted by the RBI, which assessed the financial positions of these banks as of March 31, 2022.