The Dahod Urban Co-operative Bank Limited, Dahod – Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Dahod Urban Co-operative Bank Limited, Dahod. The penalty was levied under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violations of RBI directives and guidelines relating to share linking norms, single and group borrower exposure limits, donation beyond the permissible limit, and KYC policy formulation and compliance with KYC and Anti Money Laundering guidelines. RBI considered the bank's reply to the show-cause notice and personal submissions, but concluded that the violations were substantiated.