Case Brief
By an order dated November 04, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on The Vijapur Nagarik Sahakari Bank Ltd., Vijapur, Dist. Mehsana, Gujarat. The penalty was based on supervisory findings of non-compliance with RBI directions on placement of deposits with other banks by primary urban co-operative banks and on Know Your Customer requirements. RBI said the bank failed to adhere to the prudential inter-bank exposure limit and failed to follow Customer Due Diligence procedures while establishing account-based relationships in certain accounts. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Vijapur, Gujarat