Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹25,000 on Sivagangai District Central Co-operative Bank Limited, Sivagangai, Tamil Nadu, by an order dated July 03, 2024. The penalty arose from non-compliance with NABARD’s directions on ‘Frauds- Guidelines for Classification, Reporting and Monitoring’, specifically a delay in reporting a fraud to NABARD. RBI issued a show-cause notice, considered the bank’s response and oral submissions, and then concluded that the charge was sustained. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- Co-operative bank
- Location
- Sivagangai, Tamil Nadu