Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Nagarik Sahakari Bank Limited, Bhiwandi, Maharashtra for non-compliance with directions on 'Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks'. After a statutory inspection and a show-cause process, RBI held that the charge concerning fees for activation of inoperative accounts was sustained. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.