RBI Imposes Rs8.30 Lakh Penalty on Dombivli Nagari Sahakari Bank for Regulatory Violations
Moneylife Digital Team 24 January 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs8.30 lakh on Dombivli Nagari Sahakari Bank Ltd for non-compliance with directions issued by RBI on the maintenance of deposit accounts – primary urban cooperative banks (UCBs).
 
The statutory inspection of Dombivli Nagari Sahakari Bank, conducted by RBI regarding its financial position as of 31 March 2023, revealed that the lender had levied penal charges for non-maintenance of minimum balance in some inoperative accounts. 
 
After considering the lender’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against Dombivli Nagari Sahakari Bank are sustained, warranting imposition of monetary penalty.
 
However, the banking regulator clarified that its action against Dombivli Nagari Sahakari Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
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