Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Makarpura Industrial Co-operative Bank Ltd., Vadodara under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated directives/guidelines on advances to directors and their relatives, single borrower exposure ceiling, donation ceiling of 1%, KYC requirements, CTR/STR reporting for cash transactions above Rs 10 lakh, and submitted wrong compliance information in response to a previous inspection report. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and penalty was justified.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Vadodara, Gujarat