RBI · Enforcement
RBI fines Hutatma Sahakari Bank ₹5 lakh for director-relative loan
Penalty for violating norms on loans to directors’ relatives; bank sanctioned loan to relative of director.
What changed
- RBI imposed ₹5 lakh penalty on Hutatma Sahakari Bank
- Charge sustained: bank sanctioned loan to relative of director
The read
The RBI slapped a ₹5 lakh penalty on Hutatma Sahakari Bank. The central bank acted after a statutory inspection found the bank had sanctioned a loan to a relative of a director, violating its directions on loans to directors’ relatives. After a show-cause notice and personal hearing, the charge was sustained. The action is purely for regulatory non-compliance and does not invalidate any transactions. It signals the RBI's strict approach to related-party lending, even for small co-operative banks.
Key numbers
- Penalty amount: ₹5 lakh
- Date of order: June 19, 2026
- Inspection reference: March 31, 2025
Primary source: rbi.org.in