Case Brief
What Happened
By an order dated September 28, 2023, the RBI imposed a monetary penalty of Rs 64 lakh on RBL Bank Limited. The action was taken for non-compliance with RBI Directions on prior approval for acquisition of shares or voting rights in private sector banks, 2015. RBI said the bank failed to obtain annual Form B declarations from one of its major shareholders within the prescribed time for three financial years and also failed to furnish certificates confirming continuance of the shareholder's fit-and-proper status by the relevant deadlines. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after a show-cause notice, reply, and oral submissions.