Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Rajkot Nagarik Sahakari Bank Ltd., Rajkot (Gujarat). 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) after RBI found violations relating to income recognition and asset classification norms, Section 6(1)(j) of the Act, instructions on issuance of demand draft/postal order against cash, non-adherence to KYC norms, and persistence of deficiencies identified in earlier inspection reports. RBI had issued a show-cause notice based on an inspection as on March 31, 2012, and imposed the penalty after considering the bank's reply and oral submissions.