RBI imposes monetary penalty on The Gandhidham Mercantile Co-operative Bank Limited, Kachchh, Gujarat

Case Brief

By an order dated August 09, 2024, RBI imposed a monetary penalty of ₹1 lakh on The Gandhidham Mercantile Co-operative Bank Limited, Kachchh, Gujarat. The penalty followed a statutory inspection and subsequent supervisory proceedings that found the bank had donated to a trust where directors or their relatives were interested, violating RBI directions on donations to trusts and institutions with related-party interests. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then sustained the charge under the Banking Regulation Act, 1949.