Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Dhrangadhra Peoples’ Co-operative Bank Ltd., Dist. Surendranagar (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 violations of its guidelines and instructions regarding concurrent audit of the investment portfolio, periodic review of risk categorization, generation and submission of Suspicious Transactions Reports to FIU (IND), and the DEAF Scheme. The bank had received a show-cause notice, submitted a written reply, and made personal submissions, but RBI held that the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Dhrangadhra, Gujarat