Case Brief
What Happened
RBI, by order dated June 28, 2021, imposed a monetary penalty of Rs 37.50 lakh on SVC Co-operative Bank Ltd., Mumbai. The action followed a statutory inspection and subsequent examination that found non-compliance with RBI's Master Directions on 'Interest Rate on Deposits' and the Circular on 'Frauds Monitoring and Reporting Mechanism'. RBI issued a show-cause notice, considered the bank's reply and oral and written submissions, and then concluded that the contraventions were substantiated, warranting the penalty under the Banking Regulation Act, 1949.