Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹2 lakh on The Nellore Co-operative Urban Bank Ltd., Nellore, Andhra Pradesh, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was imposed after RBI found that the bank had violated supervisory restrictions placed on it under the revised Supervisory Action Framework (SAF). RBI had issued a show-cause notice, examined the bank's written reply, and held a personal hearing before concluding that the violations were substantiated and merited the penalty.