Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
10 Oct 2024
Case Brief
By an order dated September 26, 2024, RBI imposed a penalty of ₹50,000 on Jaihind Urban Co-operative Bank Limited, Pune, after a statutory inspection found non-compliance with RBI directions on 'Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks'. RBI said the sustained charge was the bank's failure to conduct the annual review of accounts that had no operations for more than one year. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found supervisory non-compliance with RBI directions on 'Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks'. The sustained charge was that the bank failed to conduct the annual review of accounts that had remained inoperative for more than one year, in breach of RBI directions, leading to action under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and remains subject to RBI supervisory oversight. The order does not itself invalidate any customer transaction or agreement, but it signals continued regulatory scrutiny and the possibility of further action by RBI.
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 50,000
- Order Date
- 26 Sept 2024
- Effective From
- 26 Sept 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank