Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Etawah Urban Co-operative Bank Ltd., Etawah (U.P.) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty followed violations of RBI instructions/guidelines relating to supervisory instructions issued under Section 36(1) of the Act, area of operation, branch authorization policy, opening/upgradation of extension counters and ATMs, and shifting/splitting/closure of offices. RBI issued a show-cause notice, considered the bank’s written reply and personal hearing, and concluded that the violations were substantiated and warranted penalty.