RBI imposes monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Vidisha, Madhya Pradesh
Case Brief
By an order dated September 05, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Vidisha, Madhya Pradesh. The penalty was imposed for contravention of section 26A read with section 56 of the Banking Regulation Act, 1949, after NABARD’s statutory inspection and RBI’s review found that the bank failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period.
RBI imposed a monetary penalty after a statutory inspection by NABARD found contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. The bank’s reply and additional submissions were considered, but RBI sustained the charge that it had not transferred the eligible amounts to the Depositor Education and Awareness Fund within the prescribed time, attracting penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Severity Assessment
The action is a monetary penalty of ₹1 lakh, which falls in the lowest monetary band and has no broader operational restriction.
The bank must absorb the penalty and ensure future compliance with the Banking Regulation Act requirements relating to transfer of eligible amounts to the Depositor Education and Awareness Fund. The order does not itself restrict operations or customer transactions, but it signals continued supervisory scrutiny and leaves open the possibility of further RBI action if deficiencies persist.
Published as Jila Sahakari Kendriya Bank Maryadit, Vidisha, Madhya Pradesh
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