Case Brief
What Happened
By an order dated May 24, 2024, RBI imposed a monetary penalty of ₹20.00 lakh on Bharati Sahakari Bank Limited, Pune. The penalty was imposed because the bank failed to comply with certain RBI directions on frauds monitoring and reporting mechanism; specifically, RBI found that the bank had delayed reporting a fraud in a current account to RBI. The action followed a statutory inspection, a show-cause notice, and consideration of the bank’s reply and oral submissions, and was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.