RBI · Enforcement
RBI imposes ₹10-lakh penalty on Ashok Sahakari Bank for loan to director
The bank violated Section 20(1) of the Banking Regulation Act by sanctioning a loan to one of its directors.
What changed
- RBI imposed ₹10 lakh penalty on Ashok Sahakari Bank
- Bank sanctioned loan to its director, breaching Section 20(1) of BR Act
The read
RBI has penalised Ashok Sahakari Bank ₹10 lakh for lending to a director, a clear violation of Section 20(1) of the Banking Regulation Act, 1949. The penalty follows a statutory inspection that found the bank had sanctioned a loan to one of its directors. The action is based on deficiencies in regulatory compliance and is without prejudice to any other action RBI may initiate.
Key numbers
- Penalty: ₹10 lakh
- Section: 20(1) of BR Act
Primary source: rbi.org.in