Recorded RBI impact
Fine: Rs 2.50 L
Monetary penalty · Fresh imposition
Published by RBI
17 Oct 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.50 lakh on Jila Sahakari Kendriya Bank Maryadit, Mandsaur, Madhya Pradesh, by order dated October 07, 2024. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Banking Regulation Act, 1949, after a statutory inspection by NABARD and a subsequent show-cause notice. RBI found that the bank had contravened section 26A read with section 56 by failing to transfer eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed period.
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Banking Regulation Act, 1949, after supervisory findings and a show-cause process. The sustained charge was that the bank failed to transfer eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed period, in contravention of section 26A read with section 56 of the BR Act.
Operating Impact
The bank must absorb the monetary penalty and address the compliance lapse identified by RBI. The action does not itself alter customer transactions or contracts, but it signals continued supervisory scrutiny and leaves open the possibility of further regulatory action if similar breaches recur.
Regulatory Basis
- section 26A read with section 56 of the Banking Regulation Act, 1949
- section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 2.50 L
- Order Date
- 7 Oct 2024
- Effective From
- 7 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank