RBI imposes monetary penalty on Sulaimani Co-operative Bank Ltd., Vadodara, Gujarat

Case Brief

By an order dated February 10, 2025, RBI imposed a monetary penalty of ₹2.00 lakh on Sulaimani Co-operative Bank Ltd., Vadodara, Gujarat. The penalty was imposed for non-compliance with RBI directions relating to placement of deposits with other banks by primary (urban) co-operative banks and interest rate on deposits. RBI said the bank failed to adhere to the prudential inter-bank (gross) exposure limit, offered fixed deposits for a minimum tenor that was not as prescribed, and opened certain savings deposit accounts in the name of ineligible entities. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.