RBI imposes monetary penalty on The Gujarat Rajya Karmachari Co-operative Bank Ltd., Ahmedabad, Gujarat

Case Brief

RBI, by order dated June 25, 2024, imposed a monetary penalty of ₹7.50 lakh on The Gujarat Rajya Karmachari Co-operative Bank Ltd., Ahmedabad, Gujarat. The penalty was imposed under the Banking Regulation Act after RBI’s statutory inspection found sustained non-compliance with RBI directions and statutory provisions. The bank was found to have failed to disclose the RBI-imposed penalty in the Notes to Accounts in its annual report, not furnished documents and complete information sought by RBI inspecting officers, breached prudential inter-bank counterparty exposure limits, and not paid interest on matured term deposits from the date of maturity till repayment at the applicable rate. RBI clarified that the action is based on supervisory deficiencies and does not pronounce on the validity of any customer transaction.