RBI imposes monetary penalty on The Greater Bombay Co-operative Bank Limited, Mumbai

Case Brief

RBI, by order dated May 22, 2024, imposed a monetary penalty of Rs 25 lakh on The Greater Bombay Co-operative Bank Limited, Mumbai. The bank was found to have levied flat-rate charges on savings bank deposit accounts for non-maintenance of minimum balance, instead of charging proportionately to the shortfall, contrary to RBI directions on maintenance of deposit accounts for Primary (Urban) Co-operative Banks. The action followed a statutory inspection, a show-cause notice, and consideration of the bank's reply and oral submissions, and was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.