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Brief
"On 28/10/2024, the Reserve Bank of India issued an update regarding RBI imposes monetary penalty on The Gondia District Central Co-operative Bank Ltd., Maharashtra.
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹ 2.60 lakh on The Gondia District Central Co-operative Bank Ltd., Maharashtra for contravention of the provisions of section 20 read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’.
The bank was found to have sanctioned a loan to its director and failed to obtain the membership of three CICs. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The RBI has stated that this monetary penalty is without prejudice to any other action that may be initiated against the bank."
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