RBI imposes monetary penalty on Sardarganj Mercantile Co-operative Bank Ltd., district Anand (Gujarat)

Case Brief

By order dated December 15, 2022, RBI imposed a monetary penalty of ₹3.00 lakh on Sardarganj Mercantile Co-operative Bank Ltd., district Anand, Gujarat. The penalty was imposed because inspection findings showed the bank had not maintained the minimum Cash Reserve Ratio (CRR) and had incurred capital expenditure beyond ₹10,000 without prior RBI approval, in contravention of RBI’s CRR/SLR directions for primary (urban) co-operative banks and specific directions issued under the Supervisory Action Framework (SAF) on January 1, 2019. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any customer transaction or agreement.