RBI · Enforcement
RBI fines Amravati Merchants Bank ₹50,000 for director loan violations
The Reserve Bank of India has penalized The Amravati Merchants Sahakari Bank Ltd. for lending to directors in breach of its rules on director-related loans.
What changed
- RBI imposed ₹50,000 penalty on The Amravati Merchants Sahakari Bank Ltd.
- Bank sanctioned director-related loans violating RBI directions
The read
The Reserve Bank of India fined The Amravati Merchants Sahakari Bank Ltd. ₹50,000. The penalty stems from a statutory inspection as of March 31, 2025, which found the bank had lent to directors, breaching RBI's directions on director-related loans. This action reflects RBI's enforcement of regulatory compliance, even for modest sums. Co-operative banks must adhere strictly to governance norms, or face consequences.
Key numbers
- Penalty: ₹50,000
- Bank: The Amravati Merchants Sahakari Bank Ltd.
- Order date: June 4, 2026
Primary source: rbi.org.in