Case Brief
RBI imposed a monetary penalty of Rs 3.00 lakh on Hissar Urban Cooperative Bank Ltd., Hisar by order dated September 23, 2022. The bank was found to have contravened Section 35A and Section 36(1) read with Section 56 of the Banking Regulation Act, 1949 after an inspection revealed it had not followed RBI directions issued under the Supervisory Action Framework. The specific lapse noted was that the bank offered interest rates on savings deposits that were not in line with RBI’s directions. RBI issued a show-cause notice, considered the bank’s reply, and then concluded that the charges were substantiated, warranting the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Hisar, Haryana