Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
25 Jul 2024
Case Brief
RBI, by an order dated July 19, 2024, imposed a monetary penalty of ₹1.00 lakh on Jilla Sahakari Kendriya Bank Maryadit, Khargone, Madhya Pradesh. The action followed NABARD’s statutory inspection and related supervisory findings that the bank had contravened section 26A read with section 56 of the Banking Regulation Act, 1949 by not transferring eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. RBI considered the bank’s reply, oral submissions, and additional submissions before concluding that the charge was sustained and that penalty was warranted.
Why RBI Acted
Based on supervisory findings from NABARD’s statutory inspection (with reference to the bank’s financial position as on March 31, 2023), RBI concluded that the bank had contravened section 26A read with section 56 of the Banking Regulation Act, 1949 by not transferring eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. After notice, reply, oral submissions, and additional submissions, RBI imposed a monetary penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act.
Operating Impact
The bank must absorb the penalty and remain compliant with the Depositor Education and Awareness Fund transfer requirement going forward. The action does not by itself restrict operations or invalidate customer transactions, but RBI notes it may initiate other action if warranted.
Regulatory Basis
- section 26A read with section 56 of the Banking Regulation Act, 1949
- section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 19 Jul 2024
- Effective From
- 19 Jul 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank