Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Dec 2023
Case Brief
By an order dated November 22, 2023, RBI imposed a monetary penalty of Rs 1 lakh on Pune Merchants Co-operative Bank Limited, Pune, Maharashtra. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI found during statutory inspection that the bank had not conducted the annual review of inoperative/dormant accounts, contrary to RBI directions on Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks.
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. In the statutory inspection with reference to financial position as on March 31, 2022, RBI found that the bank failed to conduct the annual review of inoperative/dormant accounts, constituting non-compliance with RBI directions on Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks.
Operating Impact
The bank must bear the penalty and continue complying with RBI directions on maintenance of deposit accounts, including annual review of inoperative/dormant accounts. The action does not announce any new operational restriction for customers beyond the monetary penalty.
Regulatory Basis
- section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 22 Nov 2023
- Effective From
- 22 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank