RBI imposes monetary penalty on Tarapur Co-operative Urban Bank Ltd., Dist. Anand, Gujarat

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Tarapur Co-operative Urban Bank Ltd., Dist. Anand, Gujarat, for non-compliance with RBI directions on placement of deposits with other banks by primary (urban) co-operative banks. RBI said the bank had failed to adhere to the prudential inter-bank counterparty exposure limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection, issuance of a show-cause notice, consideration of the bank’s reply, and oral submissions in a personal hearing.