Case Brief
What Happened
By order dated November 17, 2023, RBI imposed a monetary penalty of ₹5.00 lakh on Indapur Urban Co-operative Bank Ltd., Pune, Maharashtra. The penalty was for non-compliance with RBI directions on investments by primary (urban) co-operative banks, maintenance of deposit accounts, and income recognition, asset classification, provisioning and other related matters. RBI said its inspection found breaches including non-adherence to prudential inter-bank gross exposure limits, fixed penal charges for shortfall in minimum balance in savings accounts instead of proportionate charges, and failure to classify certain accounts as NPAs. The penalty was imposed under the Banking Regulation Act after considering the bank's reply and oral submissions.