Case Brief
The Reserve Bank of India imposed a monetary penalty on Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank violated its guidelines/instructions by allowing a cash withdrawal of ₹20 lakh after banking hours without approval of the Board of Directors and by failing to report a Suspicious Transaction Report to FIU-IND. After considering the bank’s written reply and personal submissions in response to the show-cause notice, RBI concluded that the violations were substantiated and warranted imposition of penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat