Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
9 Oct 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Rahimatpur Sahakari Bank Ltd., Rahimatpur, Dist. Satara, by order dated September 14, 2023. The action was taken for non-compliance with RBI directions on maintenance of deposit accounts for primary (urban) co-operative banks, after inspection revealed that the bank had not conducted the annual review of inoperative accounts. RBI stated that 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 under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after its inspection found that Rahimatpur Sahakari Bank Ltd. had not conducted the annual review of inoperative accounts, contrary to RBI directions on maintenance of deposit accounts for primary (urban) co-operative banks.
Operating Impact
The bank is liable for the penalty already imposed; the release does not announce any broader operational restriction. The finding highlights a compliance lapse in handling inoperative deposit accounts, but the press release itself does not impose additional forward-looking limits on customers or operations.
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 1.00 L
- Order Date
- 14 Sept 2023
- Effective From
- 14 Sept 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank