Reserve Bank of India penalizes The Gandhidham Mercantile Cooperative Bank Ltd., Dist. Kutch (Gujarat)


 

The Reserve Bank of India has imposed a monetary penalty of Rs 5 lakh (Rupees Five Lakh only) on The Gandhidham Mercantile Cooperative Bank Ltd, Dist. Kutch (Gujarat).

 

The penalty was for :-

 

    • violation of guidelines of the Reserve Bank on disclosure of monetary penalty in public domain,
    • lending for purchase of land for construction of commercial property,
    • non-compliance to KYC (Know Your Customer) norms,
    • non-adherence to AML (Anti Money Laundering)  guidelines
    • allowing intra-day overdrawals in several accounts. What are intra-day overdrawals? Under intraday withdrawls, debit in excess of available credit balance is allowed, without any credit appraisal.

 

 

 

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