Case Brief
By an order dated November 15, 2024, RBI imposed a monetary penalty of Rs 2.10 lakh on The Kheda People’s Co-operative Bank Ltd., Kheda, Gujarat. The penalty was for non-compliance with RBI directions on placement of deposits with other banks by primary (urban) co-operative banks and on Priority Sector Lending (PSL) targets and classification. RBI also noted that the bank breached the prudential inter-bank counterparty exposure limit and failed to deposit the prescribed amount in the MSE Refinance Fund administered by SIDBI against the shortfall in achievement of PSL target for FY 2022-23, despite a cautionary letter and subsequent notices. 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 2.10 L
- Entity Type
- Co-operative bank
- Location