Case Brief
The Reserve Bank of India has imposed a monetary penalty on The Kheralu Nagarik Sahakari Bank Ltd., Kheralu, Dist. Mehsana (Gujarat), under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank sanctioned hypothecation loans in violation of its operational instructions and failed to adhere to KYC norms in a large number of accounts. After considering the bank's reply to the show cause notice and its personal submissions, RBI concluded that the violations were substantiated and imposed a penalty of Rs 1 lakh.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Kheralu, Gujarat
- Order Date