The Vejalpur Nagarik Sahkari Bank Ltd., Vejalpur, dist. Panchmahal, Gujarat

RBI imposed a monetary penalty after its statutory inspection (with reference to the bank's financial position as on March 31, 2022) and review of the inspection report, risk assessment report and related correspondence found that the bank had violated RBI's directions on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)'. The specific lapse noted was breach of the inter-bank counterparty exposure limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and ensure future compliance with RBI's exposure-limit directions for deposits placed with other banks. The release does not indicate any operational restriction beyond the fine, but it signals supervisory concern over inter-bank counterparty risk controls.