Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Rajarshi Shahu Sahakari Bank Ltd., Pune, Maharashtra by order dated November 16, 2023. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for non-compliance with RBI directions on Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks. RBI’s inspection found that the bank imposed fixed penal charges for shortfall in minimum balance in savings bank accounts instead of charges proportionate to the shortfall, and also failed to notify customers about the shortfall before levying charges.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Pune, Maharashtra