Case Brief
What Happened
RBI, by order dated September 25, 2024, imposed a monetary penalty of Rs 1.50 lakh on Jai Bhawani Sahakari Bank Ltd., Pune, Maharashtra. The action was taken after a statutory inspection and subsequent supervisory process found contraventions of section 26A read with section 56 of the Banking Regulation Act, 1949, and non-compliance with RBI directions on Know Your Customer (KYC) and Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks. RBI sustained charges that the bank failed to transfer eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed time, and failed to conduct periodic review of account risk categorisation and annual review of inoperative accounts.