Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Panchsheel Mercantile Co-operative Bank Limited, Dist. Surat, Gujarat by order dated September 25, 2025. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after RBI’s statutory inspection and subsequent show-cause proceedings. RBI found that the bank had failed to enable customers to instantly respond by SMS 'Reply' to indicate objection to unauthorised electronic banking transactions, breaching RBI directions on customer protection and limiting customer liability.