Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Shri Bhausaheb Thorat Amrutvahini Sahakari Bank Ltd., Ghulewadi, Ahmednager 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 directives/instructions/guidelines issued on declaration of dividend by UCBs. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violation was substantiated and warranted penalty.