Case Brief
What Happened
By an order dated March 08, 2022, RBI imposed a monetary penalty of ₹3.00 lakh on The Baghat Urban Co-operative Bank Limited, Solan, HP. The penalty was imposed because the bank failed to adhere to specific directions issued by RBI under the Supervisory Action Framework (SAF), constituting contravention of Section 36(1) read with Section 56 of the Banking Regulation Act, 1949. RBI noted that the inspection report for the bank, based on its financial position as on March 31, 2020, revealed non-adherence/violation of those directions. After considering the bank's reply, oral submissions, and additional written submissions, RBI found the charge substantiated and levied the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act.