Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Urban Co-operative Bank Ltd., Basti under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed a violation of RBI instructions/guidelines for opening an on-site ATM without obtaining prior approval from RBI. RBI had issued a show-cause notice, considered the bank’s written reply, and held that the violation was substantiated, justifying the penalty.