Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
18 Nov 2024
Case Brief
RBI imposed a monetary penalty of ₹50,000 on The Mansa Nagarik Sahakari Bank Ltd., Dist. Gandhinagar, Gujarat, after finding non-compliance with RBI directions on ‘Interest Rate on Deposits’. The bank had failed to pay applicable interest on certain term deposits that remained unclaimed after maturity, from the date of maturity till repayment. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection and show-cause process.
Why RBI Acted
Following a statutory inspection with reference to the bank’s financial position as on March 31, 2023, RBI issued a show-cause notice for non-compliance with directions on ‘Interest Rate on Deposits’. After considering the bank’s reply and oral submissions, RBI held that the charge was sustained: the bank had failed to pay the applicable interest on certain term deposits that remained unclaimed after maturity from maturity date until repayment. RBI 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 remain compliant with RBI’s deposit-interest directions going forward. The action does not itself impose an operating restriction, but RBI noted that further action may still be initiated if warranted.
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 50,000
- Order Date
- 12 Nov 2024
- Effective From
- 12 Nov 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank