Case Brief
What Happened
The Reserve Bank of India penalised The Bundi Urban Co-operative Bank Limited, Bundi, Rajasthan with Rs 2 lakh under the Banking Regulation Act, 1949 and the Payment and Settlement Systems Act, 2007. RBI said the bank repeatedly violated its directives relating to donation and the levy of service charges on customers. After issuing a show-cause notice and considering the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and merited the penalty.