Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Nagrik Sahakari Bank Ltd., Indore (Madhya Pradesh). The penalty was levied under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), following a show-cause notice and consideration of the bank's written reply. RBI said the bank violated an RBI directive and Section 36(1) of the Act in connection with loans and advances to directors, their relatives, and firms/concerns in which they were interested, as well as operational instructions issued by RBI.