RBI imposes Monetary Penalty on Shree Bharat Cooperative Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.5.00 lakh on Shree Bharat Co-operative Bank Limited, Vadodara, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016’.

This penalty was issued in accordance with the powers granted to the RBI by Section 47A(1)(c) of the Banking Regulation Act of 1949, as well as Sections 46(4)(i) and 56.

This action is based on regulatory compliance problems and is not intended to call into question the legitimacy of any transaction or agreement entered into by the bank with its clients.