Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Jan 2023
Case Brief
RBI, by order dated December 28, 2022, imposed a monetary penalty of ₹1.00 lakh on Col. R.D.Nikam Sainik Sahakari Bank Ltd., Satara. The bank was found to have failed to transfer balances in certain accounts unclaimed for more than ten years to the Depositor Education and Awareness Fund, amounting to contravention of Section 26-A read with Section 56 of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. RBI issued a show-cause notice, considered the bank's written reply, and then concluded that the charge of non-compliance with RBI directions was substantiated.
Why RBI Acted
Based on the inspection report as on March 31, 2021, RBI found that the bank had not transferred balances in certain accounts that were unclaimed for more than ten years to the Depositor Education and Awareness Fund. RBI concluded that this amounted to contravention of Section 26-A read with Section 56 of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014, and imposed a penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act after considering the bank's reply.
Operating Impact
The bank must bear the monetary penalty, but the release does not impose any additional ongoing operational restriction. The action signals a compliance lapse concerning unclaimed deposit balances and related statutory transfer obligations.
Regulatory Basis
- Section 26-A read with section 56 of the Banking Regulation Act, 1949
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 28 Dec 2022
- Effective From
- 28 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank