Case Brief
What Happened
RBI, by an order dated September 28, 2023, imposed a monetary penalty of Rs 13 lakh on SBPP Co-operative Bank Limited, Killa Pardi, Gujarat, for non-compliance with directions issued by RBI on 'Interest Rate on Deposits'. The bank's statutory inspection found that it had opened savings deposit accounts of trusts whose entire income was not exempt from income-tax. RBI issued a show-cause notice, considered the bank's reply and submissions, and concluded that the charge of non-compliance was substantiated, warranting the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.