The Baramati Sahakari Bank Ltd., Baramati, Pune, Maharashtra

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 a statutory inspection (with reference to the bank’s financial position as on March 31, 2022) and review of related reports/correspondence found that the bank had failed to comply with RBI’s directions on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks.’ Specifically, it had not credited interest to inoperative savings bank accounts. RBI considered the bank’s reply, additional submissions, and oral submissions at the personal hearing before concluding the contravention was substantiated and warranted penalty.

The bank must absorb the financial penalty and continue complying with RBI’s deposit-account maintenance directions going forward. The action does not itself restrict banking operations, but it signals supervisory scrutiny over treatment of inoperative savings accounts and related customer entitlements.