Case Brief
RBI imposed a monetary penalty of ₹1.00 lakh on The Municipal Co-operative Bank Ltd., Mumbai, Maharashtra, by order dated August 17, 2023. The penalty was for non-compliance with RBI directions on Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks. During statutory inspection for the bank's position as on March 31, 2022, RBI found that the bank collected fixed penal charges for shortfall in minimum balance in savings bank accounts instead of charging proportionately to the extent of the shortfall. After a show-cause notice, the bank's reply and oral submissions were considered, and RBI concluded that the contravention was substantiated and merited penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra