Case Brief
What Happened
RBI, by order dated March 27, 2024, imposed a monetary penalty of ₹5.00 lakh on The Himachal Pradesh State Co-operative Bank Limited, Shimla. The action followed a statutory inspection by NABARD and a show-cause process. RBI found that the bank failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, in contravention of section 26A(2) read with section 56 of the Banking Regulation Act, 1949, and imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.