Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Halol Mercantile Co-operative Bank Ltd., Halol Dist. Panchmahals (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for sanctioning unsecured loans despite an operational restriction imposed on the bank under Section 36(1) of the Banking Regulation Act, 1949 (AACS). RBI considered the bank's reply to a show-cause notice and personal submissions before concluding that the violation was substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Halol, Gujarat