Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.50 lakh on Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad, Gujarat, by an order dated October 25, 2023. The action was taken for non-compliance with RBI directions relating to placement of deposits with other banks by primary urban co-operative banks and interest-rate treatment on deposits. RBI’s inspection found that the bank had breached the prudential inter-bank counterparty exposure limit, failed to pay interest on matured term deposits from maturity until repayment at the applicable rate, and failed to pay interest on deposits that matured on Sundays, holidays, or other non-business working days and were repaid on the succeeding working day. After a show-cause notice and hearing, RBI concluded that the contraventions were substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.50 L
- Entity Type
- Co-operative bank
- Location