Case Brief
By an order dated November 20, 2023, RBI imposed a monetary penalty of Rs 1.00 lakh on The Chembur Nagarik Sahakari Bank Ltd., Mumbai. The action was taken for non-compliance with RBI directions on 'Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks' after inspection found that the bank charged fixed penal charges for minimum-balance shortfalls instead of charges proportionate to the shortfall, and did not inform customers that penal charges would apply if the minimum balance was not restored within one month of notice. The penalty was imposed 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
- Mumbai, Maharashtra