Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Konark Urban Cooperative Bank Ltd., Ulhasnagar, Maharashtra, by order dated November 20, 2023. The penalty was for non-compliance with RBI directions on 'Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks'. RBI's inspection and subsequent examination found that the bank had imposed fixed penal charges for shortfall in maintenance of minimum balance in savings bank accounts instead of charges proportionate to the extent of shortfall. After issuing a show-cause notice and considering the bank's reply, RBI concluded that the contravention was established and warranted penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location