Pune Municipal Corporation Servant’s Co-Operative Urban Bank Limited, Pune, Maharashtra, Subjected to Financial Penalty from RBI

By order dated November 23, 2023, the Reserve Bank of India (RBI) fined Pune Municipal Corporation Servant’s Co-operative Urban Bank Limited, Pune (the bank) ₹1.00 lakh (Rupees One Lakh Only) for failing to follow RBI guidelines regarding “Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks.” The RBI has enforced this penalty in the execution of its authority granted by section 47 A (1) (c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

This action is not meant to rule on the legality of any transactions or agreements the bank has made with its clients; rather, it is based on regulatory compliance deficiencies.


Among other things, the RBI’s statutory inspection of the bank, which examined its financial standing as of March 31, 2022, and looked through the Risk Assessment Report and all associated correspondence, showed that the bank had neglected to perform an annual review of inactive or dormant accounts. As a result, the bank received a notice instructing it to provide justification for why it shouldn’t be penalized for not following the RBI’s instructions as specified.

The RBI concluded that the bank’s allegation of non-compliance with the aforementioned RBI directives was supported by evidence and justified the imposition of a monetary penalty after taking into account the bank’s written response to the notice and its oral submissions during the personal hearing.

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