Case Brief
What Happened
By an order dated March 2, 2022, RBI imposed a monetary penalty of ₹48.00 lakh on SBPP Co-operative Bank Limited, Killa Pardi, Gujarat under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty was based on deficiencies observed in a statutory inspection for non-compliance with RBI directions on interest payments on deposits and KYC-related requirements, including interest on deposits in deceased depositors’ current accounts, interest for deposits maturing on Sundays/holidays/non-business days and paid later, periodic review of customer risk categorisation, and assignment of UCIC.