Case Brief
What Happened
By an order dated February 6, 2024, RBI imposed a monetary penalty of ₹43.30 lakh on Zoroastrian Co-operative Bank Ltd. for non-compliance with RBI directions relating to maintenance of deposit accounts, interest rate on deposits, and fraud monitoring/reporting in UCBs. RBI said inspections and related review showed that the bank recovered penal charges from savings accounts without notifying depositors, did not pay interest on balances in current accounts of deceased individual depositors/proprietorship concerns from the date of death until repayment to claimants, and reported a fraud with delay. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank's reply and submissions.