Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Bapunagar Mihila 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 found the bank had violated directions/guidelines by exceeding the ceiling on unsecured advances, delaying reporting of Suspicious Transaction Reports (STRs), failing to file FIRs, and delaying submission of FIRs without cogent reasons. After issuing a show-cause notice and considering the bank's reply and personal hearing submissions, RBI concluded the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad