Marketyard Commercial Cooperative Bank Limited, Unjha, Dist. Mehsana, Gujarat

By order dated January 23, 2025, RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty was for non-compliance with RBI directions on donations/contributions out of UCB profits, donations to trusts and institutions where directors or their relatives hold positions or are interested, loans and advances to directors/relatives/firms in which they are interested, and KYC. RBI stated that the bank made donations beyond the prescribed ceiling, made donations to certain trusts in which its directors were interested, sanctioned certain director-related loans, and failed to conduct periodic review of risk categorisation of certain accounts at least once in six months.

The bank must absorb the monetary penalty and remain exposed to any further supervisory or enforcement action RBI may choose to initiate. The order does not by itself invalidate customer transactions, but it signals ongoing regulatory scrutiny over the bank’s donation practices, related-party exposures, and KYC controls.