Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Surat People's Co-operative Bank Ltd., Dist. Surat (Gujarat), under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank admitted co-operative societies as members and gave unsecured advances beyond the prescribed ceiling, contrary to the Banking Regulation Act and RBI instructions. After issuing a show-cause notice and considering the bank's written and personal submissions, RBI concluded that the violations were substantiated and merited the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Surat, Gujarat