The Santrampur Urban Co-operative Bank Ltd., Santrampur, Mahisagar District, Gujarat

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, 2023. The supervisory findings and subsequent proceedings sustained charges that the bank had not complied with directions on ‘Co-operative Banks - Interest Rate on Deposits’ and ‘Know Your Customer (KYC)’. Specifically, it failed to pay applicable interest on the maturity amount of unpaid matured term deposits and failed to carry out periodic review of risk categorisation of certain accounts at least once in six months.

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI, especially around term-deposit interest handling and periodic KYC risk review. The action does not itself alter the validity of customer transactions, but RBI may initiate further supervisory action if deficiencies persist.