Case Brief
What Happened
RBI, by order dated August 22, 2023, imposed a monetary penalty of ₹5.00 lakh on Lalbaug Co-operative Bank Ltd., Vadodara, Gujarat. The penalty was issued under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI said a statutory inspection revealed that the bank breached prudential inter-bank exposure limits and failed to pay interest on overdue recurring and term deposits from maturity until repayment at the applicable rate. RBI concluded the non-compliance with its directions was substantiated and warranted the penalty.