Case Brief
What Happened
By an order dated August 02, 2023, RBI imposed a monetary penalty of Rs 1.50 lakh on Shri Vinayak Sahakari Bank Ltd., Ahmedabad (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 for contravention of RBI directions on placement of deposits with other banks by primary (urban) co-operative banks. RBI's inspection, with reference to the bank's financial position as on March 31, 2022, found that the bank had breached prudential inter-bank (counterparty) exposure limits. After show-cause proceedings, RBI concluded the non-compliance was substantiated and warranted penalty.