Reserve Bank of India penalizes Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad

The Reserve Bank of India, in exercise of powers vested in it under the provisions of Section 47 A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS), imposed a monetary penalty of ` 2.00 lakh (Rupees two lakh only) on Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad for violation of the Banking Regulation Act, 1949 (AACS) / RBI directives / instructions relating to prohibition of loans and advances to directors/ relatives/related concerns.

RBI has issued Show Cause Notice to the bank in the response to which the bank has submitted a written reply and after considering facts of the case, bank™s reply and personal submission in the matter, RBI came to the conclusion that the violations were sustained and warranted imposition of penalty.

Ajit Prasad
Assistant General Manager

Press Release : 2012-2013/1597

Tags: AhmedabadBankBanking Regulation ActBanking ServicesBusinessFinancial servicesReserve Bank of IndiaRun batted in

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