RBI imposes monetary penalty on The Ron Taluka Primary Teachers Co-operative Bank Ltd., Ron, Karnataka

Case Brief

By an order dated May 22, 2024, RBI imposed a monetary penalty on The Ron Taluka Primary Teachers Co-operative Bank Ltd. for non-compliance with RBI directions on fraud monitoring/reporting and nominal membership norms. The penalty was imposed after a statutory inspection and a show-cause process, with RBI concluding that the bank had not reported frauds to RBI and had exceeded the permitted nominal-membership ratio. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.