Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 Dec 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Rajarshi Shahu Sahakari Bank Ltd., Pune, Maharashtra by order dated November 16, 2023. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for non-compliance with RBI directions on Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks. RBI’s inspection found that the bank imposed fixed penal charges for shortfall in minimum balance in savings bank accounts instead of charges proportionate to the shortfall, and also failed to notify customers about the shortfall before levying charges.
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 the bank had imposed fixed penal charges for shortfall in minimum balance in savings accounts instead of charges proportionate to the shortfall, and had failed to notify customers about the shortfall before levying charges. RBI concluded the non-compliance with its directions on Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks was substantiated.
Operating Impact
The bank must absorb the monetary penalty and is expected to strengthen compliance with RBI’s minimum-balance and customer-notification requirements for savings accounts. There is no stated operational restriction, but the case signals continued supervisory scrutiny of the bank’s deposit-account practices.
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
- 16 Nov 2023
- Effective From
- 16 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank