Case Brief
RBI imposed a monetary penalty of ₹2.00 lakh on The Viramgam Mercantile Co-operative Bank Ltd., Viramgam, district Ahmedabad (Gujarat), after finding that the bank had contravened RBI directions on maintenance of statutory reserves, specifically the Cash Reserve Ratio (CRR). The violation was identified during statutory inspection with reference to the bank's financial position as on March 31, 2018. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then 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 2.00 L
- Entity Type
- Co-operative bank
- Location
- Viramgam, Gujarat