RBI imposes monetary penalty on The Prime Co-operative Bank Ltd., Surat, Gujarat

Case Brief

RBI imposed a monetary penalty of ₹4.00 lakh on The Prime Co-operative Bank Ltd., Surat, Gujarat, after finding non-compliance with directions on customer protection for unauthorized electronic banking transactions and cyber security requirements for primary urban co-operative banks. The bank was found to have failed to provide customers the facility to report unauthorized electronic banking transactions via SMS, email and toll-free number, failed to enable an instant response option to SMS/e-mail alerts, and failed to implement certain cyber security controls. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.