Case Brief
What Happened
RBI, by an order dated September 30, 2024, imposed a monetary penalty of ₹3.00 lakh on The Muslim Co-operative Bank Limited, Pune, Maharashtra. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following supervisory findings of non-compliance with RBI directions on 'Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks'. RBI found that the bank failed to review inactive accounts annually, did not inform customers about penal charges for not maintaining the minimum balance, and levied penal charges at a flat rate for shortfall in savings-account minimum balance.