Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on The Gandevi People’s Co-operative Bank Ltd., Navsari, Gujarat, by order dated September 01, 2023. RBI said the bank failed to comply with directions on placement of deposits with other banks by UCBs and on fraud monitoring/reporting in UCBs. The inspection found that the bank breached prudential inter-bank counterparty exposure limits and did not report a fraud case to RBI within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI considered the bank's reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Navsari, Gujarat