Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Rajsamand Urban Co-operative Bank Limited, Rajsamand. The penalty was imposed under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), following inspection findings and after considering the bank’s written reply and personal submission. RBI said the violations were substantiated and related to linking of share capital to borrowings, breach of prescribed individual borrower exposure limits, granting unsecured loans beyond the prescribed limit, allowing frequent overdrafts in a current account beyond the prescribed limit, and acquisition of non-banking assets.