Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Sri Ganesh Co-operative Bank Limited, Gulbarga, Karnataka, by order dated March 25, 2025. RBI found that the bank had not complied with directions relating to exposure norms and donations/contributions out of profits of UCBs. Specifically, the bank breached prudential inter-bank (gross) and counterparty exposure limits and also made donations in excess of the prescribed regulatory limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.