RBI imposes monetary penalty on The Dhrangadhra People’s Co-operative Bank Ltd., Dhrangadhra, Dist. Surendranagar, Gujarat

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on The Dhrangadhra People’s Co-operative Bank Ltd., Dhrangadhra, Dist. Surendranagar, Gujarat. The bank was found non-compliant with RBI directions on placement of deposits with other banks by primary (urban) co-operative banks and the Depositor Education and Awareness Fund Scheme, 2014. RBI said the deficiencies were identified in a statutory inspection and that the bank’s reply and oral submissions did not alter the conclusion that the charges were substantiated. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.