Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5 lakh on The Goa Urban Co-operative Bank Ltd., Panaji by order dated September 11, 2019. The penalty was for non-compliance with RBI directions relating to the Supervisory Action Framework (SAF). RBI said the bank's statutory inspection, with reference to its financial position as on March 31, 2018, revealed non-compliance with SAF directions and maintenance of deposit accounts. After a show-cause process and consideration of the bank's reply and oral and written submissions, RBI concluded that the contravention warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.