Recorded RBI impact
Fine: Rs 75,000
Monetary penalty · Fresh imposition
Published by RBI
29 Jan 2024
Case Brief
By an order dated January 08, 2024, RBI imposed a monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Shahdol, Madhya Pradesh. The bank was found to have failed to transfer the eligible amount to the Depositor Education and Awareness Fund, contrary to section 26A read with section 56 of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. The penalty was imposed after NABARD's inspection, a show-cause notice, and consideration of the bank's reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 because the bank contravened section 26A read with section 56 of the BR Act and the Depositor Education and Awareness Fund Scheme, 2014. NABARD's statutory inspection found that the bank had not transferred the eligible amount to the Fund; after the show-cause process and hearing, RBI held the non-compliance substantiated.
Operating Impact
The bank must bear the monetary penalty of Rs 75,000; the release does not impose any additional operational restriction. The finding reflects a compliance lapse relating to transfer of eligible amounts to the Fund, but it does not invalidate any customer transaction or agreement.
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
- ‘Depositor Education and Awareness Fund Scheme, 2014’
Action Facts
- Primary Impact
- Fine: Rs 75,000
- Order Date
- 8 Jan 2024
- Effective From
- 8 Jan 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank