Case Brief
By an order dated December 28, 2022, RBI imposed a monetary penalty of Rs 6.00 lakh on Sharad Sahakari Bank Ltd., Pune for non-compliance with RBI directions on KYC and interest rate on deposits. RBI said its inspection, based on the bank’s position as of March 31, 2021, found that the bank had not implemented a system for periodic KYC updation and had failed to pay applicable interest on balances in current accounts of deceased individual depositors / sole proprietorship concerns when settling claims. The penalty was levied under the Banking Regulation Act after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 6.00 L
- Entity Type
- Co-operative bank
- Location
- Pune, Maharashtra