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Jila Sahakari Kendriya Bank Maryadit, Panna (M.P.)

Co-operative bankPanna, Madhya Pradesh

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

28 Feb 2022

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Panna (M.P.) by order dated February 24, 2022. RBI said the bank had contravened provisions of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, and RBI directions on Know Your Customer. The inspection report found that the bank had not transferred eligible amounts lying in inoperative accounts for more than ten years to the Depositor Education and Awareness Fund, and had no system to generate alerts and monitor suspicious transactions. RBI concluded the charges were substantiated and that monetary penalty was warranted.

Why RBI Acted

Reporting & disclosureKYC / AML

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 for contravention/non-compliance with the Act, the Depositor Education and Awareness Fund Scheme, 2014, and RBI KYC directions. The inspection found that the bank had not transferred eligible amounts lying in inoperative accounts for more than ten years to the Fund and had no system to generate alerts and monitor suspicious transactions.

Operating Impact

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI. Forward-looking expectations include ensuring timely transfer of eligible inoperative-account balances to the Depositor Education and Awareness Fund and putting in place systems to generate alerts and monitor suspicious transactions in line with KYC requirements. The action does not impose an operating restriction on customers, but it signals heightened regulatory scrutiny.

Regulatory Basis

  • Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
  • Section 26-A of the Act
  • the Depositor Education and Awareness Fund Scheme, 2014

Action Facts

Primary Impact
Fine: Rs 1.00 L
Order Date
24 Feb 2022
Effective From
24 Feb 2022
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank