The Reserve Bank of India (RBI) said on Thursday that it has imposed a monetary penalty of Rs 43.30 lakh on Zoroastrian Co-operative Bank Ltd for violating the rules.

The penalty was imposed on the bank on February 6, the central bank said in a press statement issued on Thursday.

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It further said that this action is based on a deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

The RBI said that the Zoroastrian Co-operative Bank Ltd had recovered penal charges from the savings bank for non-maintenance of minimum balances therein without notifying the depositors.

“The statutory inspections of the bank conducted by RBI with reference to its financial position as on March 31, 2021 and March 31, 2022, and examination of the Risk Assessment Reports, Inspection Reports and all correspondence related thereto revealed that the bank had recovered penal charges from savings bank, accounts for non-maintenance of minimum balances therein without notifying the depositors, not paid interest on balances lying in the current accounts of deceased individual depositors and proprietorship concerns from the date of their death till the date of repayment of such balances to their claimants and reported a fraud with delay,” RBI added.

The central bank further said that a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for non-compliance with the RBI directions.

“After considering the bank’s reply to the notice, its additional submissions and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank,” it said.

This penalty has been imposed in the exercise of powers conferred on RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. (ANI)