Case Brief
What Happened
By an order dated December 09, 2022, RBI imposed a penalty of ₹1.50 lakh on Patan Nagarik Sahakari Bank Ltd., Patan (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for contravention of RBI directions on maintenance of statutory reserves (CRR and SLR) by Primary (Urban) Co-operative Banks. RBI said its statutory inspection, with reference to the bank's financial position as on March 31, 2019, found that the bank had not maintained the minimum Cash Reserve Ratio, and the bank's reply and oral submissions did not alter the conclusion that the non-compliance was substantiated.