The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹ 5.00 lakh (Rupees Five Lakh) on Shri Yugprabhav Sahakari Bank Ltd., Vadodara (Gujarat), in exercise of the powers vested in it under the provisions of Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for violation of RBI guidelines for submission of proper compliance of RBI Inspection Report 2013 and sustenance thereof, maintenance of minimum 25% of Net Demand and Time Liabilities (NDTL) in Government and other approved securities and Income Recognition & Assets Classification (IRAC) norms.

The Reserve Bank of India had issued a Show Cause Notice to the bank based on the finding of inspection for the financial position as on 31.03.2014, in response to which the bank submitted a written reply and made personal submission to the Regional Director, RBI, Ahmedabad. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

Sangeeta Das
Director

Press Release : 2015-2016/357