RBI imposes monetary penalty on The Gandhidham Mercantile Co-operative Bank Ltd., Gandhidham, Dist. Kutch (Gujarat)

Case Brief

The RBI imposed a monetary penalty on The Gandhidham Mercantile Co-operative Bank Ltd., Gandhidham, District Kutch, Gujarat, by order dated October 13, 2022. The bank was found to have contravened RBI directions concerning loans and advances to directors, their relatives, and firms/concerns in which they are interested, as well as loans where directors’ relatives stood as surety/guarantor. The action followed a statutory inspection referencing the bank’s financial position as on March 31, 2021, and was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.