Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 44.00 lakh on The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad, by an order dated May 09, 2022. RBI said the bank had failed to comply with directions on 'Interest Rate on Deposits' and on 'Frauds in UCBs: Changes in Monitoring and Reporting mechanism'. The inspection findings cited failures to pay interest on certain unclaimed term deposits after maturity, failures to pay applicable interest on deposits in current accounts of deceased individual depositors or sole proprietorship concerns, and delays in reporting some frauds to RBI. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 44.0 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat