RBI imposes monetary penalty on The Gurdaspur Central Co-operative Bank Ltd., Gurdaspur, Punjab

Case Brief

By an order dated March 12, 2025, RBI imposed a monetary penalty of ₹1.00 lakh on The Gurdaspur Central Co-operative Bank Ltd., Gurdaspur, Punjab. The penalty was imposed after a statutory inspection by NABARD, supervisory findings, a show-cause notice, and consideration of the bank’s reply and oral submissions. RBI sustained the charge that the bank had sanctioned/renewed a director-related loan in contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949, and acted under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.