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
