RBI imposes monetary penalty on Malpur Nagarik Sahakari Bank Limited, Malpur, Dist. Aravalli, Gujarat

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.50 lakh on Malpur Nagarik Sahakari Bank Limited, Malpur, Dist. Aravalli, Gujarat, by order dated October 10, 2023. The penalty was imposed for non-compliance with RBI directions on placement of deposits with other banks by primary urban co-operative banks. RBI’s inspection found that the bank breached the prudential inter-bank gross exposure limit and the prudential inter-bank counterparty exposure limit, and after considering the bank’s reply and oral submissions, concluded that the contravention was substantiated.