RBI imposes monetary penalty on The Gujarat Rajya Karmachari Co-operative Bank Ltd., Ahmedabad (Gujarat)

Case Brief

By an order dated December 15, 2022, RBI imposed a monetary penalty of Rs 3.00 lakh on The Gujarat Rajya Karmachari Co-operative Bank Ltd., Ahmedabad (Gujarat). The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for contravention of RBI directions on maintenance of statutory reserves (CRR/SLR) by Primary (Urban) Co-operative Banks and section 26A of the Act read with the Depositor Education and Awareness Fund Scheme, 2014. RBI’s inspection found that the bank had not maintained the minimum Cash Reserve Ratio and had not transferred balances in certain accounts remaining unclaimed for more than ten years to the Depositor Education and Awareness Fund.