If a bank fails to maintain CRR as per Section 42 (1) of RBI,

(a) RBI can charge penal interest of 3% OBR for the first fortnight (b) 5% OBR is there for the next days (c) and the shortfall persist for 3rd fortnight also, then every director, manager or secretary of the bank is punishable with fine (d) RBI can impose penalty for non-maintenance or non-reporting which is required to be paid within 30 days from date of demand

(a) In case of default in maintenance of CRR requirement on a daily basis, penal interest will be recovered for that day at the rate of three per cent per annum above the Bank Rate on the amount by which the amount actually maintained falls short of the prescribed minimum on that day. (b) If the shortfall continues on the succeeding day(s), penal interest will be recovered at the rate of five per cent per annum above the Bank Rate. (c) In cases of default in maintenance of CRR on average basis during a fortnight, penal interest will be recovered as envisaged in sub-section (3) of section 42 of Reserve Bank of India Act, 1934.