Recorded RBI impact
Fine: Rs 1.25 L
Monetary penalty · Fresh imposition
Published by RBI
8 May 2023
Case Brief
The Reserve Bank of India imposed a penalty of Rs 1.25 lakh on Bhilai Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh) for contravention of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. RBI said the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund within the due date, based on findings from an inspection covering the bank's financial position as on March 31, 2020. After considering the bank's replies, RBI concluded that the non-compliance was substantiated and warranted monetary penalty.
Why RBI Acted
RBI imposed a monetary penalty after its inspection (financial position as on March 31, 2020) found that the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, for contravention/non-compliance with the Act and the Depositor Education and Awareness Fund Scheme, 2014, and for failing to adhere to RBI directions.
Operating Impact
The bank must absorb the financial penalty; the release does not describe any additional operational restriction or license action. The finding reflects regulatory non-compliance relating to transfer of unclaimed deposits, but RBI explicitly notes the penalty is not a pronouncement on the validity of transactions or agreements with customers.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
- the Banking Regulation Act, 1949
- the Depositor Education and Awareness Fund Scheme, 2014
Action Facts
- Primary Impact
- Fine: Rs 1.25 L
- Order Date
- 3 May 2023
- Effective From
- 3 May 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank