Case Brief
The RBI imposed a monetary penalty of ₹1.00 lakh on The Lakhwad Nagarik Sahakari Bank Ltd., Lakhwad, district Mehsana (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, because a statutory inspection revealed that the bank had not maintained the minimum Cash Reserve Ratio (CRR), contrary to RBI directions on maintenance of statutory reserves for Primary (Urban) Co-operative Banks. After issuing a show-cause notice and considering the bank's written and oral submissions, RBI found the contravention substantiated and levied the penalty. The release states that the action is based on deficiencies in regulatory compliance and does not pronounce on customer transactions.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location