Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2,00,000 on Gomti Nagariya Sahkari Bank Ltd., Jaunpur, Uttar Pradesh, 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 violated instructions on Income Recognition, Asset Classification, Provisioning and Other Related Matters for UCBs, exceeded the maximum limit on unsecured advances, and did not comply with KYC/AML guidelines. After issuing a show-cause notice, considering the bank’s written reply and granting personal hearing, RBI concluded that the violations were substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Jaunpur, U.P.