Case Brief
RBI imposed a monetary penalty of ₹4.50 lakh on Textile Traders Co-operative Bank Ltd., Ahmedabad (Gujarat) by order dated June 19, 2023. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 for contravention of RBI directions on co-operative banks' interest rate on deposits, customer protection for unauthorized electronic banking transactions, and KYC. The inspection found failures in paying interest in specified cases, providing reporting links and reply facilities for unauthorized transaction alerts, and maintaining a system for periodic review of risk categorization of accounts.
Action Snapshot
- Primary Impact
- Fine: Rs 4.50 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat