Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on The Srikalahasti Co-operative Town Bank Ltd., Srikalahasti, Andhra Pradesh. The penalty was levied under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) for non-compliance with RBI directives/guidelines/instructions on submission of compliance report. RBI had issued a show-cause notice, considered the bank's written reply, and found the violation substantiated.