Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated provisions and instructions relating to KYC norms, membership to co-operative credit societies, displaying the bank's short name, using the word 'bank' in its related entities, and extending credit facilities to units outside its area of operations. After issuing a show-cause notice, considering the bank's written reply and oral submissions at the hearing, RBI concluded that the violations were substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat