Case Brief
The Reserve Bank of India imposed a penalty of Rs 5.00 lakh on The Kheralu Nagarik Sahakari Bank Ltd., Dist. Mehsana (Gujarat) under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated Operational Instructions of RBI and single/group borrower exposure norms, based on observations made during statutory inspection with reference to the bank's financial position as on March 31, 2011. After issuing a show-cause notice and considering the bank's written reply and personal submissions, RBI concluded that the contraventions were substantiated and imposed the monetary penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Kheralu, Gujarat