Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on National Mercantile Co-operative Bank Ltd., Lucknow, 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 said the bank violated its instructions/guidelines by delaying submission of compliance. After issuing a show-cause notice, receiving the bank's written reply, and granting a personal hearing, RBI concluded that the violations were substantiated and warranted imposition of penalty.