The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on the Nagrik Sahakari Bank based in Indore (Madhya Pradesh).
The urban cooperative bank was found involved in the violation of RBI directive and section 36(1) of the Banking Regulation Act, 1949 (AACS).
The matter related to loans and advances to directors and their relatives and the firms/concerns in which they are interested and operational instructions issued to the bank by RBI respectively.
The Reserve Bank of India has penalized the bank after issuing a show cause notice and examining its written reply.