The Kutch Mercantile Co-operative Bank Ltd., Rapar, Dist. Kutch (Gujarat)

RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after finding that the bank had not complied with inspection report observations for March 31, 2012 and March 31, 2013; had not published its annual accounts for the position as on 31/03/2013 up to 31/03/2014 despite persuasion; had not completed risk categorization and Unique Customer Identification Code (UCIC) of its customers; and had circumvented RBI guidelines on issuance of Demand Drafts/Pay Orders/at-par cheques against cash receipts of ₹50,000 and above.

The bank must absorb the financial penalty; the release does not state any restriction on its operations beyond the fine. The identified compliance issues indicate supervisory concerns around disclosure, customer identification, and cash-based instrument issuance, but no additional forward-looking operational ban is described.