Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Dahod Mercantile Co-operative Bank Ltd., Dist. Dahod, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated its directives on donation. After issuing a show-cause notice, considering the bank's written reply and personal submissions, RBI concluded that the violation was substantiated and that penalty was warranted.