Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Kapadwanj Peoples Co-operative Bank Ltd., Kapadwanj, Dist Kheda (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 bank violated operational instructions issued under Section 36(1) of the BR Act, 1949 (AACS), including guidelines on extending loans and advances to directors/their relatives/concerns in which they are interested, KYC/AML norms, and implementation of Core Banking Solution. After issuing a show-cause notice, considering the bank’s written reply and personal submission, RBI concluded the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Kapadwanj, Gujarat