Army Base Workshop Credit Co-op, Meerut penalized

The Reserve Bank of India has imposed a monetary penalty of Rs five lakh rupees on 510 Army Base Workshop Credit Co-operative Primary Bank Ltd., Meerut Cantt in exercise of powers vested in it.

The credit co-op was found guilty of violation of RBI Instructions and Guidelines on Submission of Proper Compliance on Time, Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit, Obtaining Membership of Credit Information Companies (CICs), Carrying out Audit of Investment Portfolio and Depositor Education and Awareness Fund.

The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank had submitted a written reply.

After considering the facts of the case, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.