Case Brief
The Reserve Bank of India imposed a monetary penalty on Nagpur Nagarik Sahakari Bank Ltd., Nagpur for violating RBI directions on placement of deposits with other banks by Primary (Urban) Co-operative Banks. Following a statutory inspection with reference to the bank’s financial position as on March 31, 2020, RBI found that the bank, although ineligible, had accepted fixed deposits from other Urban Co-operative Banks. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the non-compliance was substantiated and warranted penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 18.5 L
- Entity Type
- Co-operative bank
- Location
- Nagpur, Maharashtra