Today was the turn of The Kheralu Nagarik Sahakari Bank Ltd., Kheralu, Dist. Mehsana (Gujarat) – to be penalized
RBI has levied a monetary penalty of Rs1.00lac(Rupees one lac only) on The Kheralu Nagarik Sahakari Bank Ltd., Kheralu, Dist. Mehsana (Gujarat) for
01) sanctioning hypothecation loans in violation of operational instructions issued by Reserve Bank of India
02) and non-adherence to `Know Your Costumer’ (KYC) norms in large number of accounts.
Kheralu is part of Mehsana District-Gujarat.
Nothing exciting about Kherau, except,
01) The population is around 25,000.
02) There was a beautiful river, currently dry.
In simple terms, Hypothecation is the act of pledging securities as collateral to obtain a loan. It is always advisable that the Value of the Securities pledged be more than the Loan Amount.