RBI imposes monetary penalty on Shree Laxmi Mahila Sahakari Bank Limited, Mehsana, Gujarat

Case Brief

RBI imposed a monetary penalty of ₹1.60 lakh on Shree Laxmi Mahila Sahakari Bank Limited, Mehsana, Gujarat, by order dated December 13, 2024. The penalty was based on supervisory findings from the bank’s statutory inspection (with reference to its financial position as on March 31, 2023) and subsequent proceedings. RBI held that the bank had failed to comply with directions on placement of deposits with other banks by primary urban co-operative banks, KYC requirements, and membership/reporting obligations relating to Credit Information Companies. The cited lapses included failure to observe the prudential inter-bank counterparty exposure limit, deficiencies in customer due diligence, delayed upload of KYC records to CKYCR, and failure to submit borrower credit information to CICs. RBI stated that the penalty was imposed under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005, and that the action was without prejudice to any other action that may be initiated.