RBI imposes monetary penalty on G S Mahanagar Co-operative Bank Limited, Mumbai

Case Brief

RBI, by order dated September 08, 2022, imposed a monetary penalty of ₹25.00 lakh on G S Mahanagar Co-operative Bank Limited, Mumbai, Maharashtra. The penalty was for non-compliance with RBI directions on ‘Maintenance of Deposit Accounts’. RBI said its inspection revealed that the bank levied penal charges for non-maintenance of minimum balance in savings bank accounts without notice to customers and without giving one month’s time for restoration of the minimum balance. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after show-cause proceedings and consideration of the bank’s submissions.