Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹25,000 on Jila Sahakari Kendriya Bank Maryadit, Satna (M.P.) by order dated February 25, 2022. The penalty was levied for contravention of and non-compliance with the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014, after inspection revealed that the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund as required under Section 26-A. RBI issued a show-cause notice, considered the bank's written replies and oral submissions, and concluded that the charge was substantiated. RBI also clarified that the penalty was based on regulatory-compliance deficiencies and did not pronounce on the validity of any transaction or agreement with customers.