RBI imposes monetary penalty on The Kheralu Nagrik Sahakari Bank Limited, Dist. Mehsana, Gujarat

Case Brief

By an order dated January 24, 2025, RBI imposed a monetary penalty of ₹1.50 lakh on The Kheralu Nagrik Sahakari Bank Limited, Dist. Mehsana, Gujarat. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023, and related supervisory findings that the bank had failed to comply with RBI directions on ‘Investment by Primary (Urban) Co-operative Banks’ and ‘Know Your Customer (KYC)’. RBI said the sustained charges included breach of the prescribed ceiling on investments held under the Held to Maturity (HTM) category and failure to carry out periodic review of the risk categorisation of certain accounts at least once in six months. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.