The Reserve Bank of India has imposed a monetary penalty of Rs twelve lakh on Rajkot Nagarik Sahakari Bank Limited, Rajkot for non-compliance with the direction issued by RBI on ‘Interest Rate on Deposits’.
This action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarified the RBI.
The statutory inspection of the bank conducted by RBI with reference to the bank’s financial position as on March 31, 2019 revealed, inter alia, that the bank had not complied with the RBI direction on payment of interest on balances lying in the current accounts of deceased individual depositors / sole proprietorship concerns while making repayments to the claimants.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI direction was substantiated and warranted imposition of monetary penalty.