The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 6 lakh on Motiram Agrawal Jalna Merchants Cooperative (MAJMC) Bank for non-compliance with several regulatory norms related to loans and advances.
According to an official, the bank violated guidelines concerning lending to a director. A statutory inspection was conducted to review the bank's management and seek clarifications. However, the bank’s response was found to be unsatisfactory, prompting the regulator to levy the penalty.
Sources revealed that Manoj Shingare, a former director of the bank, had availed a loan of Rs 9 crore. Of this amount, only Rs 4 crore has been recovered so far, while Rs 5 crore remains unpaid. During the audit, it was also discovered that proper mortgage norms were not followed when the loan was disbursed, which further violated RBI guidelines. Following the exposure of these irregularities, Shingare resigned from his position as director.