The Reserve Bank of India, in exercise of powers vested in it under the provisions of Section 47 A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS), imposed a monetary penalty of Rs 2.00 lakh (Rupees two lakh only) on Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad
The penalty was imposed for violation of the Banking Regulation Act, 1949 (AACS) / RBI directives / instructions relating to prohibition of loans and advances to directors/ relatives/related concerns.
Way back in August 2011, Reserve Bank of India had penalized the same bank for Rs1lac. That time, it was for violation of Reserve Bank of India directives/instructions relating to filing of Suspicious Transaction Reports as required under Anti Money Laundering guidelines and persistence of irregularities pointed out in the previous Reserve Bank of India inspection report.
Ahmedabad is the capital city of Gujarat State. Though incorporated into the Bombay Presidency during British rule, Ahmedabad remained one of the most important cities in the Gujarat region. The city established itself as the home of a developing textile industry, which earned it the nickname Manchester of the East. The city was at the forefront of the Indian independence movement in the first half of the 20th century and the centre of many campaigns of civil disobedience to promote farmers’ and workers’ rights, and civil rights apart from political independence.
One of the major highlights in Ahmedabad’s recent history is the inauguration of IIMA Cases website by Prof. S K Barua, Director IIMA.
- New Bank Licenses – RBI to post its clarifications on its website (simplybanking.wordpress.com)
- French bank ‘Societe Generale’ opens its first Gujarat branch in Sanand. (gujaratecoadvancment.wordpress.com)
- The Auto Wars – Tamil Nadu vs Gujarat (news.in.msn.com)