The Reserve Bank of India has imposed a monetary penalty on Shri Dadasaheb Gajmal Co-operative Bank Ltd., Pachora, District Jalgaon in exercise of the powers vested in it.
The UCB was guilty of violation of the instructions and guidelines of the Reserve Bank of India relating to creation of floating charge on its assets without the prior permission of the Reserve Bank of India.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of the penalty.