RBI imposes monetary penalty on Vidyananad Co-operative Bank Limited Solapur (Maharashtra)

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Vidyanand Co-operative Bank Limited, Solapur, Maharashtra, by order dated December 07, 2023. RBI found, based on statutory inspection and examination of the Risk Assessment Report and related correspondence, that the bank had breached the prudential inter-bank gross exposure limit and had not complied with RBI directions on exposure norms, placement of deposits with other banks, and investments by primary urban co-operative banks. After a show-cause process and consideration of the bank's reply and oral submissions, RBI concluded that the non-compliance was substantiated and warranted penalty under the Banking Regulation Act, 1949.