RBI imposes monetary penalty on The Central Co-operative Bank Limited, Bikaner, Rajasthan

Case Brief

By an order dated April 16, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on The Central Co-operative Bank Limited, Bikaner, Rajasthan. The penalty was imposed for non-compliance with NABARD directions on 'Frauds - Guidelines for Classification, Reporting and Monitoring', after NABARD’s statutory inspection and subsequent supervisory findings indicated delay in reporting of frauds. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then found the charge sustained under the Banking Regulation Act, 1949.