Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5,00,000 on Magadh Central Co-operative Bank Ltd., Gaya under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The breach related to Section 27 of the B.R. Act, 1949 (AACS), concerning submission of statutory returns. RBI issued a show-cause notice, considered the bank’s written reply, and then concluded that the violation was substantiated and merited penalty.