Case Brief
The Reserve Bank of India imposed a monetary penalty on Sardar Bhiladwala Pardi People’s Co-operative Bank Ltd., Killa Pardi, District Valsad (Scheduled UCB), Gujarat. The penalty was levied under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for violation of RBI guidelines relating to loans beyond the ceiling of ₹1 lakh to nominal members. RBI had issued a show-cause notice based on an inspection finding as on March 31, 2015. After considering the bank’s written reply and oral submissions, RBI concluded that the violations were substantiated and imposed a ₹5 lakh penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Killa Pardi, Gujarat