Recorded RBI impact
Fine: Rs 36.4 L
Monetary penalty · Fresh imposition
Published by RBI
3 Apr 2025
Case Brief
By an order dated March 28, 2025, RBI imposed a monetary penalty on Aryavart Bank, Lucknow under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. The penalty followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2023, a show-cause notice, and consideration of the bank’s reply and oral submissions. RBI sustained the charge that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949 after a statutory inspection and show-cause process. The sustained charge was that Aryavart Bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, amounting to contravention of Section 26A read with Section 51(1) of the BR Act.
Operating Impact
Aryavart Bank must bear the monetary penalty and remain mindful of future supervisory action, as RBI expressly stated that the penalty is without prejudice to any other action that may be initiated. There is no operational restriction in this release, but the bank is expected to correct the compliance lapse and ensure timely transfer of eligible unclaimed amounts going forward.
Regulatory Basis
- Section 26A read with Section 51(1) of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 36.4 L
- Order Date
- 28 Mar 2025
- Effective From
- 28 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank