Reserve Bank of India – Press Releases

The Reserve Bank of India (RBI) has, by an order dated August 29, 2022, imposed a financial penalty of ₹15.00 lakh (Rupees Fifteen Lakh solely) on Thane Bharat Sahakari Bank Limited, Thane, Maharashtra (the financial institution) for non-compliance with the instructions issued by RBI on ‘Customer Protection – Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’. This penalty has been imposed in train of powers vested in RBI conferred underneath part 47 A (1) (c) learn with sections 46 (4) (i) and 56 of Banking Regulation Act, 1949 (BR Act).

This motion is predicated on deficiency in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects.

Background

The statutory inspection of the financial institution performed by RBI just about its monetary place as on March 31, 2020, and examination of the Risk Assessment Report and all associated correspondence pertaining to the identical, revealed, inter alia, that the financial institution didn’t present a direct hyperlink for purchasers to lodge complaints, with particular choice to report unauthorised digital transactions, on the house web page of its web site. In furtherance to the identical, a discover was issued to the financial institution advising it to point out trigger as to why penalty shouldn’t be imposed for contravention of the RBI instructions, as said therein.

After contemplating the financial institution’s reply to the discover, the extra submissions made by it and the oral submissions made throughout the private listening to, RBI got here to the conclusion that the cost of non-compliance with the aforesaid RBI instructions was substantiated and warranted imposition of financial penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/820