Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Sarvodaya Sahakari Bank Ltd., Surat (Gujarat) under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank violated its instructions by making a donation beyond the prescribed ceiling. After issuing a show-cause notice and considering the bank’s written reply and personal submissions, RBI concluded that the violation was substantiated and warranted the penalty.