The Reserve Bank of India has imposed a monetary penalty of Rs 1.00 lakh (Rupees one lakh only) on The Kheda People’s Co-operative Bank Ltd., Kheda (Gujarat).
The UCB was found guilty of contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms/ concerns in which they are interested’.
This penalty has been imposed due to the failure of the bank to adhere to the aforesaid directions issued by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, says RBI.