Case Brief
What Happened
By an order dated April 26, 2024, RBI imposed a monetary penalty of ₹5.00 lakh on The Sutex Co-operative Bank Ltd., Surat, Gujarat. The penalty followed a statutory inspection and show-cause process in which RBI found that the bank had not conducted vulnerability assessment and penetration testing of its internet-facing mobile application as required, and had levied penal charges for non-maintenance of minimum balances in inoperative accounts. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.