Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad (Gujarat) for contravention of its directions on maintenance of statutory reserves, specifically the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) applicable to Primary (Urban) Co-operative Banks. RBI said statutory inspection and related records showed the bank had not maintained the minimum CRR. After a show-cause notice, reply, and oral hearing, RBI concluded the charge was substantiated and warranted penalty under Section 47A(1)(c) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat