Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Varachha Co-operative Bank Ltd., Surat (Gujarat), by order dated January 19, 2022. RBI found that the bank had not transferred balances lying in certain accounts that remained unclaimed for more than ten years to the Depositor Education and Awareness Fund, in contravention of section 26A(2) of the Banking Regulation Act, 1949 read with the Depositor Education and Awareness Fund Scheme, 2014. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act after inspection, notice, reply, and oral submissions.