Case Brief
RBI imposed a monetary penalty of ₹12.00 lakh on Rajkot Nagarik Sahakari Bank Limited, Rajkot for non-compliance with RBI’s direction on ‘Interest Rate on Deposits’. The regulator said a statutory inspection revealed that the bank had failed to comply with the instruction on payment of interest on balances in the current accounts of deceased individual depositors / sole proprietorship concerns while making repayments to claimants. After considering the bank’s reply and oral submissions, RBI held the charge substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 12.0 L
- Entity Type
- Co-operative bank
- Location
- Rajkot, Gujarat