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

Co-operative bankSatna, M.P.

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

Recorded RBI impact

Fine: Rs 25,000

Monetary penalty · Fresh imposition

S1

Published by RBI

28 Feb 2022

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹25,000 on Jila Sahakari Kendriya Bank Maryadit, Satna (M.P.) by order dated February 25, 2022. The penalty was levied for contravention of and non-compliance with the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014, after inspection revealed that the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund as required under Section 26-A. RBI issued a show-cause notice, considered the bank's written replies and oral submissions, and concluded that the charge was substantiated. RBI also clarified that the penalty was based on regulatory-compliance deficiencies and did not pronounce on the validity of any transaction or agreement with customers.

Why RBI Acted

Reporting & disclosureCustomer protectionGovernance oversight

RBI imposed a penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 after an inspection found that the bank had failed to transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund in contravention of Section 26-A of the Act and the Scheme. RBI stated the bank had not adhered to its directions; after notice, replies, and oral submissions, the charge was found substantiated.

Operating Impact

The bank must bear the monetary penalty and address the compliance lapse relating to transfer of eligible unclaimed deposits to the Depositor Education and Awareness Fund. No operational restriction is imposed by this release, but the bank remains accountable for maintaining compliance with the Act, the Scheme, and RBI directions.

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 Banking Regulation Act, 1949
  • The Depositor Education and Awareness Fund Scheme, 2014

Action Facts

Primary Impact
Fine: Rs 25,000
Order Date
25 Feb 2022
Effective From
25 Feb 2022
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank