Case Brief
The Reserve Bank of India penalised The Talod Nagarik Sahakari Bank Ltd., Talod, Dist. Sabarkantha (Gujarat), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The violation related to RBI instructions governing declaration and disbursal of dividend to shareholders, contrary to operational instructions dated March 25, 2011. After issuing a show-cause notice and considering the bank’s reply and personal submissions, RBI concluded that the contravention was substantiated and imposed a penalty of Rs 5 lakh.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Talod, Gujarat