Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Surat People's Co-operative Bank Ltd., Dist. Surat (Gujarat), under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was imposed for violation of RBI instructions on director-related loan accounts. RBI said the bank had been issued a show-cause notice, submitted a written reply and made personal submissions, but the violations were found substantiated.