Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 May 2023
Case Brief
RBI imposed a monetary penalty on Suvarnayug Sahakari Bank Limited., Pune by order dated April 27, 2023. The penalty was levied after inspection findings showed non-compliance with RBI directions on Maintenance of Deposit Accounts, specifically collecting fixed penal charges for shortfall in minimum balance in savings bank accounts and failing to provide the required notice about penal charges if the minimum balance was not restored within a month. The action was taken under the Banking Regulation Act, 1949 after RBI issued a show-cause notice and considered the bank's reply.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 after its inspection found that the bank had been collecting fixed penal charges for shortfall in maintaining minimum balance in savings accounts instead of charging proportionately to the extent of shortfall. RBI also found that the bank did not give notice that if the minimum balance was not restored within a month from the date of notice, penal charges would apply. After considering the bank's reply, RBI concluded the contravention of its directions on Maintenance of Deposit Accounts was substantiated.
Operating Impact
The bank must absorb the penalty and remain compliant with RBI's deposit-account rules going forward. The action does not indicate a business restriction, but it signals heightened compliance expectations around minimum balance charges and customer notice requirements for savings accounts.
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 1.00 L
- Order Date
- 27 Apr 2023
- Effective From
- 27 Apr 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank