Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Hubli Urban Co-operative Bank Ltd., Hubli, Karnataka 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 violated its instructions through irregularities in cheque discounting and overdrawal in overdraft loan accounts. After issuing a show-cause notice and reviewing the bank’s written reply, RBI concluded that the violations were established beyond doubt and justified the penalty.