Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Deola Merchants Co-operative Bank Ltd., Deola, Dist. Nashik under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank violated its instructions/guidelines by submitting false compliance regarding closure of NPA accounts and by indulging in ever greening of loans. After issuing a show-cause notice and considering the bank's written and oral submissions, RBI concluded that the violation was substantiated and warranted penalty.