RBI imposes monetary penalty on Nazareth Urban Co-operative Bank Ltd., Tamil Nadu

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.00 lakh on Nazareth Urban Co- operative Bank Ltd., Tamil Nadu, for non-compliance with RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. The bank was found guilty of sanctioning loans to the relative of a director due to a deficiency in regulatory compliance. This penalty is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The RBI has imposed this penalty without prejudice to any other action that may be initiated against the bank.