Case Brief
RBI, by order dated November 30, 2023, imposed a monetary penalty of Rs 3.00 lakh on The Kutch Mercantile Co-operative Bank Limited, Rapar, Dist. Kachchh, Gujarat. The penalty was for non-compliance with RBI directions relating to placement of deposits with other banks by UCBs, nominal membership, and exposure norms. RBI said inspection findings showed breaches of the prudential inter-bank gross exposure limit and counterparty exposure limit, and loans sanctioned to nominal members above the applicable ceiling. The action was taken 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 3.00 L
- Entity Type
- Co-operative bank
- Location
- Rapar, Gujarat