Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Muzaffarnagar Jila Sahkari Bank Ltd., Muzaffarnagar, Uttar Pradesh under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank had violated instructions/guidelines relating to restriction on holding shares in other co-operative societies under Section 19 of the Act. After considering the bank’s reply to the show-cause notice, RBI concluded that the violations were substantiated and that penalty was warranted.