Case Brief
What Happened
By an order dated November 02, 2023, RBI imposed a monetary penalty of Rs 48.30 lakh on The Nasik Merchant’s Co-operative Bank Ltd., Nashik. The penalty was imposed for non-compliance with RBI directions on fraud monitoring/reporting in UCBs and on maintenance of deposit accounts. RBI’s inspection found that the bank had delayed reporting fraud cases, levied penal charges for non-maintenance of minimum balances in dormant/inoperative savings bank accounts, and levied such charges in savings bank accounts without notifying customers. The action was taken under Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.