RBI imposes monetary penalty on Ambarnath Jai Hind Co-operative Bank Limited, Ambarnath, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on Ambarnath Jai Hind Co-operative Bank Limited, Ambarnath, Maharashtra, by order dated April 01, 2024. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI's statutory inspection found violations of its directions on 'Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks'. RBI said the bank had collected fixed penal charges for shortfall in minimum balance in savings accounts without giving one month notice, charged penal amounts for non-maintenance of minimum balance in inoperative accounts, and charged fees for activation of inoperative accounts.