Case Brief
What Happened
By an order dated September 20, 2022, RBI imposed a monetary penalty of ₹50.00 lakh on The Jalgaon People’s Co-operative Bank Ltd., Jalgaon, Maharashtra. The penalty was for non-compliance with RBI directions on income recognition, asset classification, provisioning and related matters (IRAC norms), maintenance of deposit accounts, and interest rate on deposits. RBI said inspection revealed that the bank failed to classify certain accounts as NPAs, charged penal fees for non-maintenance of minimum balances in savings accounts without proper customer notice and restoration time, and did not pay interest on certain current account balances of deceased depositors / sole proprietorship concerns. RBI imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.