Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹13.00 lakh on Janata Sahakari Bank Ltd., Pune for non-compliance with RBI directions on 'Interest Rate on Deposits'. Following statutory inspection and examination of related records, RBI found that the bank failed to pay applicable interest on balance amounts lying in the current accounts of deceased individual depositors / sole proprietorship concerns at the time of repayment to the claimant. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the charge was substantiated and warranted penalty under the Banking Regulation Act, 1949.