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Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad, Gujarat

Co-operative bankAhmedabad, Gujarat

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 2.50 L

Monetary penalty · Fresh imposition

S2

Published by RBI

23 Nov 2023

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.50 lakh on Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad, Gujarat, by an order dated October 25, 2023. The action was taken for non-compliance with RBI directions relating to placement of deposits with other banks by primary urban co-operative banks and interest-rate treatment on deposits. RBI’s inspection found that the bank had breached the prudential inter-bank counterparty exposure limit, failed to pay interest on matured term deposits from maturity until repayment at the applicable rate, and failed to pay interest on deposits that matured on Sundays, holidays, or other non-business working days and were repaid on the succeeding working day. After a show-cause notice and hearing, RBI concluded that the contraventions were substantiated and imposed the penalty under the Banking Regulation Act, 1949.

Why RBI Acted

Capital & exposure normsCustomer protectionReporting & disclosure

RBI imposed a monetary penalty on Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad, Gujarat under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The statutory inspection found that the bank breached the prudential inter-bank counterparty exposure limit, did not pay interest on matured term deposits from the date of maturity until repayment at the applicable rate, and failed to pay interest on term deposits that matured on Sundays/holidays/non-business working days and were repaid on the next working day. The penalty was for non-compliance with RBI directions on placement of deposits with other banks by UCBs and RBI’s Co-operative Banks interest-rate directions.

Operating Impact

The bank must absorb the penalty and continue complying with RBI’s deposit-placement and deposit-interest directions. The action has no stated operating restriction, but it underscores ongoing compliance obligations affecting depositors and inter-bank exposures.

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 2.50 L
Order Date
25 Oct 2023
Effective From
25 Oct 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank