Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Kuppam Co-operative Town Bank Ltd. under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated directions issued under Section 35A and instructions/guidelines relating to submission of compliance reports, and also continuously failed to submit returns under Section 27(2). After issuing a show-cause notice and receiving no reply, RBI held the violations substantiated and imposed the penalty of ₹5 lakh.