RBI imposes monetary penalty on The Adinath Co-Operative Bank Limited, Dist. Surat, Gujarat

Case Brief

By an order dated February 13, 2024, RBI imposed a monetary penalty of Rs 1.50 lakh on The Adinath Co-operative Bank Limited, Dist. Surat, 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 directions on placement of deposits with other banks by Primary (Urban) Co-operative Banks. RBI’s inspection for the bank’s financial position as on March 31, 2023 found that it had breached the prescribed inter-bank gross exposure limit as well as the prudential inter-bank counterparty exposure limit. After notice, reply, and oral hearing, RBI held the charge substantiated and levied the penalty.