Case Brief
What Happened
By an order dated May 8, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on The Bapunagar Mahila Co-operative Bank Ltd., Ahmedabad, Gujarat. The action followed a statutory inspection and subsequent supervisory proceedings in which RBI found non-compliance with its directions on placement of deposits with other banks by primary urban co-operative banks. After a show-cause notice, reply, and personal hearing, RBI concluded that the bank had breached prudential inter-bank (counterparty) exposure limits. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.