Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on The Gandhidham Mercantile Co-operative Bank Ltd, Dist. Kutch (Gujarat). RBI said the bank violated operational instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). After issuing a show-cause notice and considering the bank’s reply and personal submission, RBI concluded that the violation was substantiated and warranted penalty under Section 47A(1)(b) read with Section 46(4) of the Act.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Gandhidham, Gujarat
- Order Date