Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on The Gandhidham Mercantile Co-operative Bank Ltd, Dist. Kutch (Gujarat). RBI said the bank violated operational instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). After issuing a show-cause notice and considering the bank’s reply and personal submission, RBI concluded that the violation was substantiated and warranted penalty under Section 47A(1)(b) read with Section 46(4) of the Act.