Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Idar Nagarik Sahakari Bank Limited, Idar, Dist. Sabarkantha, Gujarat. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 for non-compliance with RBI’s directions on placement of deposits with other banks by primary (urban) co-operative banks. RBI’s inspection, based on the bank’s financial position as on March 31, 2022, found that the bank had breached the prudential inter-bank counterparty exposure limit. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the violation was substantiated, warranting the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Idar, Gujarat