Case Brief
What Happened
By an order dated July 7, 2022, RBI imposed a penalty of ₹37,50,000 on The Maharashtra State Co-operative Bank Ltd., Mumbai. The bank was found non-compliant with NABARD's 'Frauds - Guidelines for Classification, Reporting and Monitoring' after a statutory inspection and subsequent examination of related correspondence. RBI issued a show-cause notice, considered the bank's response, and concluded that the violation was substantiated under the Banking Regulation Act, 1949.