Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Sahebrao Deshmukh Co-operative Bank Ltd., Mumbai under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was imposed after RBI found violations of its instructions/guidelines relating to opening of an on-site ATM. The bank had received a show-cause notice and submitted written as well as oral representations, but RBI concluded that the violations were substantiated and deserved penal action.