Recorded RBI impact
Fine: Rs 26.6 L
Monetary penalty · Fresh imposition
Published by RBI
22 Feb 2024
Case Brief
By an order dated February 7, 2024, RBI imposed a monetary penalty of ₹26.60 lakh on G P Parsik Sahakari Bank Ltd., Thane. The action followed a statutory inspection and review which found that the bank had delayed shadow reversal of unauthorised electronic transaction amounts beyond 10 working days after customer notification and had levied ATM card issuance and annual maintenance charges in BSBD accounts. RBI concluded that the bank had violated its directions on customer protection and Basic Savings Bank Deposit Accounts, and imposed the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and examination of related reports found that the bank had not credited the amounts involved in certain unauthorised electronic transactions into customers' accounts within 10 working days from customer notification, and had levied ATM card issuance charges and annual maintenance charges in BSBD Accounts. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for contravention of RBI directions on customer protection and BSBD accounts.
Operating Impact
The bank must absorb the financial penalty and continue to comply with RBI directions on unauthorised electronic banking transactions and BSBD account practices. The action does not invalidate customer transactions, but it underscores ongoing compliance obligations affecting customers of the bank.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 26.6 L
- Order Date
- 7 Feb 2024
- Effective From
- 7 Feb 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank