The Reserve Bank of India has imposed a monetary penalty of Rs. 2.00 lakh (Rupees Two Lakh only) on The Gandhidham Mercantile Co-operative Bank Ltd, Dist. Kutch (Gujarat), in exercise of the powers vested on it under the provisions of Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) for violation of operational instructions issued under Section 36(1) of B.R. Act, 1949 (AACS).

The Reserve Bank of India had issued a Show Cause Notice to the bank in response to which the bank submitted a written reply. After considering the facts of the case, the bank’s reply and also personal submission in the matter, RBI came to the conclusion that the violation was substantiated and warranted imposition of penalty.

Ajit Prasad

Assistant General Manager

Monetary penalty imposed for breach of operational banking instructions after show cause process and bank submissions. Reserve Bank of India imposed a monetary penalty on The Gandhidham Mercantile Co operative Bank Ltd for contravention of operational instructions under the Banking Regulation Act (as applicable to co operative societies), exercising powers under Section 47A read with Section 46(4) in relation to directions issued under Section 36(1), following a Show Cause Notice, written reply and personal submissions.