The Reserve Bank of India has imposed a monetary penalty of `1.00 lakh (Rupees One Lakh only) on the The Dahod Mercantile Co-operative Bank Ltd., Dist. Dahod. The monetary penalty was for violation of Reserve Bank of India directives on donation.
Like all commercial institutions, Banks in India too can make donations. However,RBI guidelines on Donations by banks have to be adhered to.
The profit making banks may make donations during a financial year, aggregating up to one percent of the published profit of the bank for the previous year.
However, the following contributions/ subscriptions are exempted from the 1% ceiling.
- Prime Minister’s Relief Fund,
- To professional bodies/ institutions like Indian Banks’ Association, National Institute of Bank Management, Indian Institute of Banking and Finance, Institute of Banking Personnel Selection, Foreign Exchange Dealers Association of India.
The banks cannot carry forward the un-utilized amount of the permissible limit of a year to the next year.
Dahod primary claim to fame is as the birthplace of Emperor Aurangzeb. Another chief educational attraction is the Dahod I.T.I which caters to the needs of the local tribal population.
The district shares two borders with neighboring states, hence the another name as “Dohad“, which means “two boundaries”; called so as the States of Rajasthan (region of Wagad) and Madhya Pradesh (region of Malwa) borders the town.