Case Brief
By an order dated October 05, 2021, RBI imposed a monetary penalty of Rs 1 lakh on The Kheda People’s Co-operative Bank Ltd., Kheda (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after RBI found non-compliance with its directions on loans and advances to directors, relatives, and firms/concerns in which they are interested. The bank’s statutory inspection, with reference to its financial position as on March 31, 2019, and the examination of related correspondence, revealed the contravention. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge was substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Kheda, Gujarat