RBI imposes monetary penalty on Navsarjan Industrial Co-operative Bank Ltd., Ankleshwar, dist. Bharuch, Gujarat

Case Brief

The Reserve Bank of India imposed a monetary penalty on Navsarjan Industrial Co-operative Bank Ltd., Ankleshwar, dist. Bharuch, Gujarat, by order dated December 14, 2023. The bank was found, during statutory inspection, to have breached inter-bank gross and counterparty exposure limits, not reviewed the risk categorization of accounts at the prescribed periodicity, and failed to transfer the eligible amount to the Depositor Education and Awareness Fund. RBI concluded that these lapses amounted to non-compliance with its directions on placement of deposits with other banks by Primary Urban Co-operative Banks and KYC directions, and also contravened Section 26A(2) read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.