The Reserve Bank of India (RBl) has imposed a monetary penalty of Rs. 1 lakh (Rupees One Lakh only) on The Panchsheel Mercantile Co-operative Bank Limited, District Surat, Gujarat for non-compliance with certain directions issued by RBI on ‘Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’. The Panchsheel Mercantile Co-operative Bank had failed to immediately respond to the SMS alerts to inform its customers about unauthorized electronic banking transactions, if any, due to which the RBI has imposed a fine of Rs 1 lakh on the bank.
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| RBI Imposes Rs 1 lakh Penalty on Panchsheel Mercantile Co-operative Bank |
RBI Imposes ₹1 lakh Penalty on Panchsheel Mercantile Co-operative Bank
The Reserve Bank of India (RBl) has imposed a monetary penalty of ₹1 lakh on The Panchsheel Mercantile Co-operative Bank Limited, District Surat, Gujarat for non-compliance with certain directions issued by RBI on ‘Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions’.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of 2.25 lakh on Beed District Central Co-operative Bank Limited Maharashtra.
RBI Imposes Penalty on Panchsheel Mercantile Co-operative Bank: Background
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
- The Panchsheel Mercantile Co-operative Bank had failed to enable its customers to instantly respond by "Reply" to the SMS alerts to notify the objection towards unauthorised electronic banking transactions, if any.
This action is based on deficiencies 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank
About Panchasheel Mercantile Co-operative Bank
The Panchasheel Mercantile Co-operative Bank was registered with the Registrar’s Office on 1st October 1973 having its founder directors (1) Shashikantbhai D. Patel (2) Arunbhai Banker (3) Arunbhai Amin (4) Jagmohanbhai K. Solanki (5) Jayantilal B. Mehta (6) Navinbhai Mehta (7) Hemantbhai Chapatwala (8) Ishaqbhai Saraiya and (9) Bakulbhai Mehta.
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Objective of Panchasheel Mercantile Co-operative Bank
The basic objectives of Panchasheel Mercantile Co-operative Bank were to promote frugality, raising money for advancing and to fulfill small financial needs of small and medium scale industries and handicraft business and artisans. One of its objectives was to free poor and salaried people from the trap of money lenders.
Vision of Panchasheel Mercantile Co-operative Bank
The Vision of Panchasheel Mercantile Co-operative Bank is to become a leading urban co-operative bank rooted in the true spirit of co-operative tradition & trust.
Mission of Panchasheel Mercantile Co-operative Bank
- Financial inclusion: Mission to provide financial and banking service to the deprived people of the society
- Relationship-based banking services high on customer care
- Constant up-gradation of technology for better products and services
- Maintenance of high quality asset portfolio
- Human Resource development and talent-grooming
- Cost-consciousness and efficiency in administration
About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Panchsheel Mercantile Co-operative Bank for upcoming exams
- Registered on: 1st October 1973
- Chairman: Mayurbhai S. Chauhan (Advocate)
- Vice-Chairman: Ajaykumar J. Choksi (Ex.MLA & Chief Of Whip) Gujarat
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