RBI imposes Monetary Penalty on Balasinor Nagarik Sahakari Bank Ltd., Balasinor, Dist. Mahisagar

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on Balasinor Nagarik Sahakari Bank Ltd., Balasinor, District Mahisagar, 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 levied because the bank was found to have violated RBI operational instructions under Section 36(1) of the B R Act, exceeded the prescribed individual borrower exposure limit, sanctioned loans on bullet repayment basis against gold/silver ornaments beyond the prescribed ceiling, breached the prescribed Do’s and Don’ts for directors, and failed to comply with UCIC-related guidelines. RBI stated that it had issued a show-cause notice, reviewed the bank’s written reply and personal submissions, and concluded that the violations were substantiated.