Case Brief
The Reserve Bank of India penalised Shahada Peoples Co-operative Bank Ltd., Shahada, District Nandurbar with a monetary penalty of Rs. 1.00 lakh under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated RBI directives/guidelines by exceeding the individual exposure ceiling through investment in IDFC Bonds. After a show-cause notice and review of the bank's written reply, RBI concluded that the contravention was substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Shahada, Maharashtra
- Order Date