Case Brief
What Happened
By an order dated November 03, 2023, RBI imposed a monetary penalty of Rs 1.00 lakh on The Dhrangadhra People’s Co-operative Bank Ltd., Dhrangadhra, Dist. Surendranagar, Gujarat. The penalty was imposed under Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 for non-compliance with RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’. RBI’s inspection found that the bank had breached the inter-bank counterparty exposure limit. After considering the bank’s reply and oral submissions, RBI concluded that the contravention was substantiated and warranted penalty.