Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on The Rajkot Nagrik Sahakari Bank Ltd., Rajkot under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had undertaken activities akin to a travel agent, let out its premises to shops and a doll museum, not adhered to the clean note policy, and not prepared its balance sheet in the format meant for co-operative banks. After a show-cause notice, the bank's written reply, and personal submissions, RBI held that the violations were substantiated and merited penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Rajkot, Gujarat