Nagarik Sahakari Bank Limited

RBI imposed a monetary penalty on Nagarik Sahakari Bank Limited, Bhiwandi, Maharashtra under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty followed a statutory inspection with reference to the bank's financial position as on March 31, 2023, supervisory findings of non-compliance with RBI directions on 'Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks', and a show-cause process. RBI found that the charge regarding charging customers for activation of their inoperative accounts was sustained, warranting the penalty.

The bank must absorb the monetary penalty and comply more carefully with RBI directions on deposit account maintenance going forward. The action does not, on its face, impose an operating restriction on customers, but it signals supervisory concerns and leaves open the possibility of further RBI action.