RBI imposes monetary penalty on Pune People’s Co-operative Bank Limited, Pune

Case Brief

The Reserve Bank of India imposed a monetary penalty on Pune People’s Co-operative Bank Limited, Pune by order dated February 14, 2023. RBI said the bank failed to comply with its directions on interest rate on deposits, specifically by not paying interest on balances in current accounts of deceased individual depositors/sole proprietorships from the date of death until repayment to the claimant(s). The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after a notice, written reply, and oral hearing process.