Case Brief
The Reserve Bank of India imposed a monetary penalty on Shree Morbi Nagarik Sahakari Bank Limited, Morbi, Gujarat by order dated November 30, 2023. RBI said the bank failed to comply with directions on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)', and the statutory inspection for the bank's financial position as on March 31, 2022 revealed a breach of the prudential inter-bank counterparty exposure limit. After considering the bank's reply and oral submissions, RBI concluded the non-compliance was substantiated and imposed a penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Morbi, Gujarat