Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
27 Mar 2023
Case Brief
RBI, by order dated March 23, 2023, imposed a monetary penalty of ₹2.00 lakh on Shri Ganesh Sahakari Bank Ltd., Navi Sangvi, Pune under the Banking Regulation Act, 1949. The bank was found non-compliant with RBI directions on Know Your Customer (KYC) and Maintenance of Deposit Accounts because it lacked a system for identifying and reporting suspicious transactions and charged a fixed penalty for shortfall in minimum balance instead of a proportionate charge. RBI clarified that the action was based on regulatory deficiencies and did not pronounce on customer transactions or agreements.
Why RBI Acted
RBI found, based on its statutory inspection and related examination, that the bank lacked a system for identification and reporting of suspicious transactions and was charging a fixed penalty for shortfall in minimum balance in savings accounts instead of a proportional amount based on the actual shortfall. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, for non-compliance with RBI directions on KYC and Maintenance of Deposit Accounts.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with RBI's KYC and deposit-account maintenance directions. Operationally, the release does not announce a new restriction on banking საქმიანities, but it signals closer regulatory scrutiny of suspicious-transaction reporting and savings-account charge practices.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 23 Mar 2023
- Effective From
- 23 Mar 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank