RBI imposes monetary penalty on Gujarat Ambuja Co-operative Bank Ltd., Ahmedabad, Gujarat

The Reserve Bank of India (RBI), through an order dated May 28, 2024, has imposed a monetary penalty of ₹1.00 lakh on Gujarat Ambuja Co-operative Bank Ltd., Ahmedabad. \r

This penalty stems from the bank's non-compliance with RBI directives on 'Loans and Advances to directors, relatives and firms/concerns in which they are Interested' and 'Loans and Advances to directors as surety/guarantors'. The penalty was imposed under the powers vested in RBI by sections 47A(1)(c), 46(4)(i), and 56 of the Banking Regulation Act, 1949, following a statutory inspection as of March 31, 2023. \r

Despite the penalty, RBI clarified that it does not question the validity of any specific transactions and reserves the right to take further actions against the bank.