RBI penalises The Kutch Mercantile Co-operative Bank Ltd., Rapar, Dist. Kutch (Gujarat)

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Kutch Mercantile Co-operative Bank Ltd., Rapar, Dist. Kutch (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the violations established included non-compliance with inspection report observations for March 31, 2012 and March 31, 2013, failure to publish annual accounts for the position as on 31/03/2013 up to 31/03/2014 despite persuasion, incomplete risk categorization and UCIC of customers, and circumvention of RBI guidelines on issuance of Demand Drafts/Pay Orders/at-par cheques against cash receipts of ₹50,000 and above.