Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Becharaji Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat, for non-compliance with RBI directions on placement of deposits with other banks by Primary (Urban) Co-operative Banks. The violation arose from a breach of prudential inter-bank counter-party exposure limits, as revealed during RBI's statutory inspection and review of related reports. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then concluded that the contravention was established and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mehsana, Gujarat