RBI slaps Rs 5 lakh fine on Sahakari Bank in Maharashtra

MUMBAI: Reserve Bank on Thursday slapped a penalty of Rs 5 lakh on Maharashtra-based Shri BJ Khatal Janata Sahakari Bank for violation of the directives prohibiting loans and advances to directors and their relatives.

A show cause notice was issued to the bank in Sangamner, Maharashtra. Based on the reply and the action taken by the bank in this regard, the violation was substantiated and warranted imposition of penalty, RBI said in a release.