RBI imposes monetary penalty on People’s Co-operative Bank Ltd., Dholka, Gujarat

Case Brief

RBI imposed a monetary penalty on People’s Co-operative Bank Ltd., Dholka, Gujarat by order dated September 18, 2023. The penalty was issued under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI’s inspection found that the bank had sanctioned a loan to a relative of one of its directors and had failed to pay interest on overdue term deposits from maturity until repayment at the applicable rate. RBI concluded that the non-compliance with its directions on loans and advances to directors/relatives and on interest rate for deposits was substantiated and warranted the penalty.