Surat National Co-operative Bank Ltd

RBI imposed a monetary penalty after its inspection found that the bank had not paid interest on matured term deposits from the date of maturity until repayment at the applicable rate, and had not provided customers a 'Reply' facility to respond to SMS and email alerts for instantly reporting unauthorised electronic banking transactions. 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 Co-operative Banks - Interest Rate on Deposits and Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions.

The bank must absorb the monetary penalty and strengthen compliance with RBI deposit-interest and electronic-banking customer protection requirements. The order does not describe a direct operating ban, but it signals supervisory findings that may require remediation in deposit servicing and fraud-reporting processes for customers.