Recorded RBI impact
Fine: Rs 1.50 L
Monetary penalty · Fresh imposition
Published by RBI
9 Sept 2024
Case Brief
By order dated September 05, 2024, RBI imposed a monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Raipur, Chhattisgarh. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after NABARD's statutory inspection and subsequent supervisory proceedings found that the bank had contravened section 26A read with section 56 by not transferring eligible amounts to the Depositor Education and Awareness Fund within the prescribed period.
Why RBI Acted
RBI imposed a monetary penalty after the statutory inspection (conducted by NABARD with reference to the bank's financial position as on March 31, 2023) found contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. RBI sustained the charge that the bank did not transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, attracting penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must bear the Rs 1.50 lakh penalty, and the order serves as a regulatory censure for the compliance lapse. The release does not impose an operational restriction on the bank's business, but RBI notes that other action may still be initiated separately.
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 BR Act
Action Facts
- Primary Impact
- Fine: Rs 1.50 L
- Order Date
- 5 Sept 2024
- Effective From
- 5 Sept 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank