Case Brief
What Happened
RBI, by order dated September 22, 2023, imposed a monetary penalty of ₹13 lakh on Rajkot Nagarik Sahakari Bank Ltd., Rajkot under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty followed a statutory inspection and subsequent show-cause process that found the bank had not complied with RBI directions on interest rate on deposits, including failure to pay eligible interest on deposits maturing on a Sunday/holiday/non-business day and on matured unpaid term deposits that remained unclaimed.