Baroda Gujarat Gramin Bank, Vadodara (Gujarat)

Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2021, the inspection report and related correspondence showed that Baroda Gujarat Gramin Bank did not report five fraud cases to NABARD within the prescribed timeline. This was treated as contravention of NABARD’s directions on ‘Frauds - Guidelines for Classification, reporting and Monitoring of Frauds’. The RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge was substantiated, warranting a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 51 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and ensure future compliance with NABARD’s fraud reporting timelines. The order does not state any operational restriction, but it signals heightened regulatory scrutiny over the bank’s fraud classification and reporting controls.