Case Brief
What Happened
By an order dated August 08, 2025, RBI imposed a monetary penalty of ₹1 lakh on Sardargunj Mercantile Co-operative Bank Limited, Patan, Gujarat. The penalty followed a statutory inspection with reference to the bank's financial position as on March 31, 2024, and a notice/cause-and-hearing process. RBI found that the bank had not complied with directions on 'Co-operative Banks - Interest Rate on Deposits' because it had accepted certain interest-free deposits in accounts other than current account. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.