A statement issued by the Reserve Bank of India informs that Gandhidham Mercantile Cooperative Bank in Kutch in Gujarat has to pay a fine of Rs. 5 lakh for violating various guidelines.
The release blames the co-op bank of faulting on disclosure of monetary penalty in public domain, money laundering and intra-day overdrawals.
Besides, the GMCB has been found guilty of violation of norms on giving money for buying real estate for construction of commercial property and Know Your Customer.
Earlier the apex bank had issued a notice to the GMCB and found the bank’s reply unsatisfactory.
