Case Brief
RBI imposed a monetary penalty of Rs 5 lakh on The Gandhidham Mercantile Cooperative Bank Ltd., Dist. Kutch (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to cooperative societies). The bank was found to have breached RBI guidelines relating to disclosure of monetary penalty in the public domain, lending for purchase of land for construction of commercial property, KYC compliance, AML compliance, and allowing intra-day overdrawals in several accounts. RBI issued a show-cause notice, reviewed the bank's written reply and personal submission, and then concluded that the violations were substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Gandhidham, Gujarat