Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹37 lakh on Rajkot Nagarik Sahakari Bank Ltd. The penalty followed a statutory inspection as on March 31, 2018, which revealed non-compliance with RBI directions on ‘Frauds – Classification and Reporting’ and ‘Management of Advances’. RBI said the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after issuing a show-cause notice and considering the bank’s response and hearing submissions.