Case Brief
What Happened
The Reserve Bank of India penalised The Chittoor Co-operative Town Bank Ltd. under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank had violated its directives/guidelines/instructions by not transferring unclaimed deposits to the Depositor Education and Awareness Fund under section 26A. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violation was substantiated and imposed a monetary penalty of Rs 50,000.