Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Sarvodaya Nagarik Sahakari Bank Ltd., Himmatnagar, Gujarat for non-compliance with its directions on placement of deposits with other banks by Primary (Urban) Co-operative Banks. Based on statutory inspection and examination of the inspection report and related correspondence, RBI found that the bank had breached the inter-bank counter-party exposure limit. Following a show-cause notice and the bank’s reply and oral submissions, RBI held that the violation was substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Himmatnagar, Gujarat