Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
1 Feb 2024
Case Brief
By an order dated January 19, 2024, RBI imposed a monetary penalty of Rs 50,000 on Janata Sahakari Bank Limited, Amravati for contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. The action followed RBI's statutory inspection as on March 31, 2022, which found that the bank had not transferred the eligible amount to the Depositor Education and Awareness Fund within the due date. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then concluded that the non-compliance was substantiated.
Why RBI Acted
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 its statutory inspection found that Janata Sahakari Bank Limited, Amravati had not transferred the eligible amount to the Depositor Education and Awareness Fund within the prescribed time. The bank's reply and oral submissions were considered, but RBI concluded the non-compliance was substantiated and warranted penalty.
Operating Impact
The bank must absorb the financial penalty; the release does not indicate any restriction on operations, but it underscores a compliance lapse regarding transfer of unclaimed/deposit-related amounts to the Depositor Education and Awareness Fund. No direct forward-looking restriction on customers is stated.
Regulatory Basis
- section 26A read with section 56 of the Banking Regulation Act, 1949
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 19 Jan 2024
- Effective From
- 19 Jan 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank