Case Brief
RBI, by order dated December 12, 2022, imposed a monetary penalty of ₹50,000 on Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, district Vadodara, Gujarat. The penalty was imposed for contravention of RBI directions on maintenance of statutory reserves—specifically Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) applicable to primary (urban) co-operative banks. RBI’s inspection, with reference to the bank’s financial position as on March 31, 2018, found that the bank had not maintained the minimum CRR. After issuing a show-cause notice and considering the bank’s reply and oral submissions at the hearing, RBI held the contravention to be substantiated and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location