The Kushtagi Pattana Sahakara Bank Niyanit, Kushtagi, Dist. Koppal – Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Kushtagi Pattana Sahakara Bank Niyanit, Kushtagi, Dist. Koppal, Karnataka under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was for violation of Section 36(1)(a) of the Act in relation to granting/renewing loans, acceptance of fresh deposits, and allowing withdrawal of deposits beyond Rs 1,000, contrary to directions issued to the bank under Section 35A. RBI considered the bank's reply and personal submissions before concluding that the violations were substantiated and warranted the penalty.