The Rajkot Commercial Co-operative Bank Ltd., Rajkot (Gujarat)

Following a statutory inspection with reference to the bank's financial position as on March 31, 2022, RBI found that The Rajkot Commercial Co-operative Bank Ltd. had not identified NPAs on an ongoing basis, had breached prudential inter-bank gross exposure norms and counter-party limits, and had breached the limit for investments under the HTM category. These actions amounted to contraventions of RBI directions on Prudential Norms Income Recognition, Asset Classification, Provisioning and Other Related Matters, Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs), and Guidelines for Classification and Valuation of Investments by Banks. RBI imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and continue operating subject to normal regulatory expectations; the release does not impose any new business restriction. The findings may also affect supervisory scrutiny and compel stronger compliance over NPA recognition, inter-bank exposures, counterparty limits, and investment classification/valuation going forward.