The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad (Gujarat)

RBI has imposed a ₹7 lakh penalty on The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad. The action follows contraventions involving loans where directors' relatives stood as surety/guarantor and inadequate monitoring of loan end use.

The bank must absorb the financial penalty and continue ensuring compliance with RBI directions on director-related lending and monitoring of loan end use. The action does not itself impose an operating ban, but it signals heightened supervisory scrutiny over the bank's lending controls and governance practices.

• Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949

RBI imposed a penalty of Rs 5 lakh on The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad. The action was for non-compliance with operational and supervisory instructions linked to earlier Section 35A directions.

The bank must absorb the financial penalty, but the release does not announce any new business restriction or suspension. The action primarily signals RBI's finding of non-compliance with supervisory instructions and may influence ongoing regulatory scrutiny of the bank.

• Section 47A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949
• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI continued and modified its Section 35A directions against Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad. The bank remained subject to restrictions on lending, deposits, payments and asset disposal, with depositor withdrawal limits raised over time.

The bank continued to operate only under RBI-imposed conditions, with significant limits on lending, deposits, payments, and asset transactions. Depositors could withdraw only up to the prescribed cap, subject to any set-off against liabilities, and the restrictions stayed in force until April 2, 2013 unless reviewed earlier.

• Section 35A of the Banking Regulation Act, 1949 (AACS)
• Section 56 of the Banking Regulation Act, 1949