RBI imposes monetary penalty on Zila Sahkari Bank Ltd., Mirzapur
Case Brief
By an order dated December 05, 2024, RBI imposed a monetary penalty on Zila Sahkari Bank Ltd., Mirzapur after a NABARD inspection and a show-cause process. RBI found that the bank contravened provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 by failing to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a NABARD statutory inspection and subsequent show-cause notice. RBI sustained the charge that the bank had not transferred eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed timeline, indicating non-compliance with statutory provisions.
Severity Assessment
The action is a monetary penalty of ₹5 lakh, which falls in the lowest monetary band and there is no accompanying operational restriction.
The bank must absorb the ₹5 lakh penalty, and the enforcement does not by itself alter the bank’s operating permissions. The release notes that the penalty is without prejudice to any other action RBI may initiate, so further supervisory consequences remain possible.
Published as Zila Sahkari Bank Ltd., Mirzapur
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