The Reserve Bank of India has imposed a monetary penalty of `Rupees five lakh on Rajkot Nagrik Sahakari Bank for doing activities akin to travel agent.
The bank was found to be letting out its premises to shops, doll museum etc. RBI also found the bank not adhering to clean note policy and not preparing the balance sheet in the format meant for co-operative banks as prescribed under Banking Regulation Act, 1949 (AACS).
The Reserve Bank of India had issued a show cause notice to the bank in response to which the bank submitted a written reply.
After considering the facts of the case and the bank’s reply as also personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.