RBI imposes monetary penalty on The Panchsheel Mercantile Co-operative Bank Limited, Surat, Gujarat

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Panchsheel Mercantile Co-operative Bank Limited, Surat, Gujarat, by order dated December 06, 2023. RBI said the bank failed to comply with its directions on placement of deposits with other banks by primary urban co-operative banks and, in particular, breached the prudential inter-bank counterparty exposure limit. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following statutory inspection and a show-cause process.