Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Mar 2022
Case Brief
The Reserve Bank of India imposed a penalty of Rs 1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Narsinghpur (M.P.) by order dated March 09, 2022. RBI said the bank had failed to transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund, contrary to Section 26-A of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. The penalty was imposed after considering the bank's replies to a show-cause notice and was stated to be based on deficiencies in regulatory compliance.
Why RBI Acted
Based on its inspection as on March 31, 2019, RBI found that the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund, in contravention of Section 26-A of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. RBI concluded that the charge of non-compliance with the Act and RBI directions was substantiated and imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with the Banking Regulation Act and the DEAF Scheme, including timely transfer of eligible unclaimed deposits. The order does not itself impose an operating restriction on customers, but it signals closer compliance expectations from RBI.
Regulatory Basis
- Section 47A(1)(c)
- Section 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
- Section 26-A of the Banking Regulation Act, 1949
- the Depositor Education and Awareness Fund Scheme, 2014
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 9 Mar 2022
- Effective From
- 9 Mar 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank