Money & Banking

RBI slaps Rs 5-lakh fine on Gondal Nagrik Sahakari Bank

PTI Mumbai | Updated on March 12, 2018 Published on December 23, 2011

The Reserve Bank of India has imposed a penalty of Rs 5 lakh on cooperative sector lender Gondal Nagrik Sahakari Bank for its failure to adhere to the guidelines on disclosure of loans to directors.

“The RBI has imposed a monetary penalty of Rs 5 lakh on Gondal Nagrik Sahakari Bank Ltd... for granting loans to directors, not correctly reporting loans to directors to RBI in the statutory returns on advances to directors...,” the apex bank said in a statement.

Gondal Nagrik Sahakari Bank was also found guilty of not submitting cash transaction reports to the Financial Intelligence Unit-India (FIU—IND).

The RBI had earlier issued a show-cause notice to the bank in response to which the bank submitted a written reply.

“After considering the facts of the case and the bank’s reply as also personal submissions in the matter, the RBI came to the conclusion that the violation was substantiated and warranted imposition of the penalty,” the statement said.

Published on December 23, 2011
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