RBI imposed penalty on 510 Army Base Workshop Credit Co-operative Primary Bank Ltd. Meerut Cantt.

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5,00,000 on 510 Army Base Workshop Credit Co-operative Primary Bank Ltd., Meerut Cantt. The action was taken under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated instructions and guidelines relating to timely submission of proper compliance, prudential norms on inter-bank gross exposure and counter party limit, membership of Credit Information Companies, audit of the investment portfolio, and Depositor Education and Awareness Fund requirements. After issuing a show cause notice and considering the bank’s written reply, RBI held the violations to be substantiated and imposed the penalty.