G S Mahanagar Co-operative Bank Limited

RBI found, based on statutory inspection and related examination, that the bank violated RBI directions on ‘Maintenance of Deposit Accounts’ by levying penal charges for non-maintenance of minimum balance in savings bank accounts without prior notice to customers and without allowing one month’s time to restore the minimum balance. After considering the bank’s reply, additional submissions, and oral hearing, RBI concluded the contravention was substantiated and imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and continue complying with RBI’s deposit-account instructions, including customer notice and the one-month restoration window before levying minimum-balance charges. No operational restriction is imposed on the bank by this order, but it reinforces ongoing compliance obligations toward savings account customers.