Case Brief
By an order dated December 13, 2023, RBI imposed a monetary penalty of ₹3.00 lakh on The Mehsana Jilla Panchayat Karmachari Co-operative Bank Ltd., Mehsana, Gujarat. The penalty was imposed for non-compliance with RBI’s directions on placement of deposits with other banks by primary urban co-operative banks and for contravention of Section 26A(2) read with Section 56 of the Banking Regulation Act, 1949. RBI’s inspection found breaches of the prudential inter-bank counterparty exposure limit and a failure to transfer the eligible amount to the Depositor Education and Awareness Fund. The regulator stated that the penalty was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location