RBI imposes penalty on Shri Dadasaheb Gajmal Co-operative Bank Ltd., Pachora, Dist : Jalgaon

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Shri Dadasaheb Gajmal Co-operative Bank Ltd., Pachora, Dist: Jalgaon 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 its instructions/guidelines by creating a floating charge on its assets without prior permission from the central bank. After issuing a show-cause notice and considering the bank's written and oral submissions, RBI concluded that the violation was substantiated and that penalty was warranted.