Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹26.00 lakh on Nutan Nagarik Sahakari Bank Ltd., Ahmedabad by order dated January 17, 2023. RBI said the bank had not complied with its directions on interest rates on deposits and on the issuance of ATM-cum-Debit cards by urban co-operative banks. During inspection, RBI found that the bank failed to pay savings-deposit interest on certain overdue recurring and fixed deposits at the time of repayment and had issued ATM-cum-Debit cards to certain cash credit account holders. The penalty was levied under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.