The Reserve Bank of India has imposed, a monetary penalty of ₹50.00 lakh on The Nasik Merchant's Co-operative Bank Ltd., Nashik
Reserve bank of India had conducted a inspection for evaluation of the bank based on its financial position as on as on March 31, 2019 and March 31, 2020 and found that inter alia, violation / non-compliance with despite being ineligible to do so, continued to accept fresh deposits in existing accounts of other non-scheduled UCBs, did not phase out completely such intent account of a non-scheduled UCB and accepted deposits therein, and failed to pay applicable interest on deposits lying in the current accounts of deceased individual depositors/ sole proprietorship concerns from the date of death of account holders to the date of settlement of claims
Based on the inspections findings RBI had issued a Notice to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions issued by Reserve bank of India
After considering the bank’s reply to the notice and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty and imposed a penalty of ₹50.00 lakh Rupees.
