Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Jivan Commercial Co-operative Bank Ltd., Rajkot, Gujarat under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated KYC norms, AML guidelines, norms on advances to builders and contractors against security of land, individual and group exposure ceiling norms, and norms for unsecured financial guarantees, and also persisted in irregularities noted in a previous inspection report. After considering the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Rajkot, Gujarat