Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Gandhinagar Nagrik Co-operative Bank Ltd., Gandhinagar. RBI said the penalty was imposed under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violations involving interest rebate in loan accounts of directors and non-adherence to Know Your Customer (KYC) norms. After issuing a show-cause notice, considering the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and that penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Gandhinagar, Gujarat
- Order Date