RBI imposes monetary penalty on Surat National Co-operative Bank Ltd., Surat, Gujarat

Case Brief

By order dated September 18, 2023, RBI imposed a monetary penalty of Rs 6.00 lakh on Surat National Co-operative Bank Ltd., Surat, Gujarat. The bank was found to have contravened RBI directions on co-operative banks' interest rate on deposits and customer protection relating to limiting customers' liability for unauthorised electronic banking transactions. RBI said the inspection revealed the bank did not pay interest on matured term deposits from the date of maturity till repayment at the applicable rate, and also failed to provide a 'Reply' facility for customers to instantly report unauthorised transactions via SMS and email alerts. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.