Case Brief
RBI imposed a monetary penalty of ₹3.00 lakh on The Harij Nagrik Sahakari Bank Ltd., Harij, Gujarat for non-compliance with its directions on maintenance of Cash Reserve Ratio (CRR), placement of deposits with other banks by primary urban co-operative banks, and interest rate on deposits. RBI said the bank had failed to maintain the minimum CRR for a few days, breached the inter-bank counter-party exposure limit, and failed to pay applicable interest on deposits in the current accounts of deceased individual depositors or sole proprietorship concerns. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Harij, Gujarat