Reserve Bank of India penalizes The Nasik Merchants’ Co-operative Bank Ltd., Nasik, Maharashtra


The Nasik Merchants’ Co-operative Bank Ltd., Nasik is popularly known by its short name NAMCO. Over it 52 years of existence, the Multistate Scheduled bank has opened 58 branches i.e. Nasik District 47 Branches, other parts of Maharashtra 9 branches and 2 branches outside Maharashtra.

The Bank set up a charitable trust known as ‘NAMCO Charitable Trust’. The trust had seven Trustees who were also Directors of the bank and the purpose of the trust was to run a medical college cum hospital for general public. This was against section 6(1) (j) of the Banking Regulation Act 1949 (AACS).

As this violation was classified as ‘Major’, Reserve Bank of India has imposed a monetary penalty of `5.00 lakh (Rupees Five Lakh Only) on The Nasik Merchants’ Co-operative Bank Ltd., Nasik, Maharashtra.

Nasik is a well known tourist place, serving as a base for pilgrims visiting Trimbak and Shirdi (79km southeast), birthplace of the original Sai Baba.

Every 12 years Nasik plays host to the Kumbh Mela, the largest religious gathering on earth. The next one is due in 2019, but a smaller gathering,  Ardha Mela (Half Mela), is held every six years.

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