Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Sarvodaya Commercial Co-operative Bank Ltd., Mehsana, Gujarat by order dated July 27, 2021. The penalty was imposed after RBI's statutory inspection and review of related records found non-compliance with directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI issued a show-cause notice, considered the bank's reply and submissions, and then held the charge substantiated under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.