Case Brief
What Happened
RBI, by order dated September 21, 2023, imposed a monetary penalty on The Ghatal Peoples Co-operative Bank Limited, West Bengal. The action followed statutory inspection and revealed non-compliance with RBI directions on membership of Credit Information Companies, exposure norms and statutory/other restrictions for urban co-operative banks, KYC directions, and the guidelines relating to the Depositor Education and Awareness Fund under section 26A of the BR Act. RBI concluded that the bank had failed to upload credit information to CICs, breached prudential inter-bank counter-party exposure limits, not established periodic review of risk categorisation of accounts, and not transferred all eligible amounts to the Fund.