RBI imposes monetary penalty on Baroda Gujarat Gramin Bank, Vadodara (Gujarat)

Case Brief

The RBI imposed a monetary penalty of ₹5.00 lakh on Baroda Gujarat Gramin Bank, Vadodara (Gujarat), by order dated August 07, 2023. The penalty was for contravention of NABARD’s directions on ‘Frauds - Guidelines for Classification, reporting and Monitoring of Frauds’. According to the release, NABARD’s statutory inspection found that the bank had not reported five fraud cases within the prescribed timeline. After a show-cause notice, the bank’s reply, and oral submissions at personal hearing, the RBI concluded that the non-compliance was substantiated and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 51 of the Banking Regulation Act, 1949.