Recorded RBI impact
Fine: Rs 4.50 L
Monetary penalty · Fresh imposition
Published by RBI
9 Oct 2023
Case Brief
By an order dated September 28, 2023, RBI imposed a monetary penalty of ₹4.50 lakh on The Kalyan Janata Sahakari Bank Limited, Kalyan, Maharashtra. The penalty was imposed after RBI’s inspection found that the bank had opened savings bank accounts of ineligible institutions and levied charges for non-maintenance of minimum balances in SB accounts without informing customers. RBI held that the bank had violated its directions on ‘Interest Rates on Deposits’ and ‘Maintenance of Deposit Accounts’ and acted under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
Following statutory inspection and examination of related reports and correspondence, RBI found that the bank had opened savings bank accounts of ineligible institutions and levied charges for non-maintenance of minimum balances in SB accounts without notifying customers. RBI concluded that the bank had breached its directions on ‘Interest Rates on Deposits’ and ‘Maintenance of Deposit Accounts’, and imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and strengthen compliance with RBI’s deposit-related directions, especially around eligibility for SB accounts and customer communication on minimum-balance charges. There is no operational restriction described in this release, but the findings signal regulatory scrutiny of deposit-account practices.
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 4.50 L
- Order Date
- 28 Sept 2023
- Effective From
- 28 Sept 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank