The Limbasi Urban Co-operative Bank Limited, Limbasi

RBI imposed a ₹25,000 penalty on The Limbasi Urban Co-operative Bank Ltd., Kheda, Gujarat. The action was for violating RBI directions on loans to directors and related parties.

The bank must absorb the monetary penalty and continue to comply with RBI’s lending restrictions on directors and related parties. There is no stated operational ban, but the finding signals heightened compliance expectations around connected lending and guarantees.

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

RBI imposed a penalty of Rs 1 lakh on The Limbasi Urban Co-operative Bank Limited, Limbasi, for AML-related reporting lapses. The bank failed to report cash transactions above the prescribed threshold to FIU-IND.

The bank must absorb the monetary penalty and ensure stronger compliance with AML reporting obligations going forward. The action has no stated operational restriction, but it signals increased regulatory scrutiny over cash-transaction reporting and FIU-IND compliance.

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