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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹15 lakh on Thane Bharat Sahakari Bank Limited, Thane, Maharashtra, by an order dated August 29, 2022. The penalty was imposed for non-compliance with RBI directions on ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’. The penalty is levied under the powers conferred on RBI through Section 47 A (1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection conducted by RBI, based on the bank’s financial position as on March 31, 2020, revealed that the bank did not provide a direct link on its website homepage for customers to lodge complaints regarding unauthorised electronic transactions. Following this observation, the bank was issued a notice to show cause as to why penalty should not be imposed.
After considering the bank’s response, additional submissions, and oral arguments during the personal hearing, RBI concluded that the bank’s non-compliance with its directions was substantiated and warranted imposition of the monetary penalty.
[RBI]