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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹6.00 lakh on Surat National Co-operative Bank Ltd., Surat for contravention of directions on interest rates on deposits and customer protection in electronic banking transactions.
The statutory inspection conducted by RBI revealed the following lapses:
The bank did not pay interest on matured term deposits from the date of maturity until repayment at the applicable rate. Customers could not respond to electronic banking alerts via SMS or email to report unauthorised transactions promptly. Following a show-cause notice and personal hearing, RBI concluded that the non-compliance with its directions was substantiated and warranted the imposition of the penalty.
This action underscores RBI’s ongoing efforts to ensure customer protection, adherence to regulatory directives, and robust operational standards in co-operative banks.
[RBI]