Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
22 Feb 2021
Case Brief
By an order dated February 22, 2021, RBI imposed a monetary penalty on Jilla Sahakari Kendriya Bank Maryadit, Sidhi for non-compliance with the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. The violations arose from not transferring eligible amounts from inoperative accounts to the Depositor Education and Awareness Fund and from delays in submitting statutory returns to RBI and NABARD, as revealed in the bank's statutory inspection as on March 31, 2019. RBI said the bank's reply to the show-cause notice was considered before the penalty was confirmed.
Why RBI Acted
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 after a statutory inspection found that the bank had failed to transfer eligible balances lying in inoperative accounts to the Depositor Education and Awareness Fund and had delayed submission of statutory returns to RBI and NABARD. RBI issued a show-cause notice, considered the bank's reply, and concluded that the non-compliance with the Act and RBI directions was substantiated, warranting a penalty.
Operating Impact
The bank must bear the Rs 1 lakh penalty, but the release does not indicate any operational restriction on its business. The action highlights continuing compliance obligations around dormant-account transfers and timely submission of statutory returns to RBI and NABARD.
Regulatory Basis
- Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
- Depositor Education and Awareness Fund Scheme, 2014
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 22 Feb 2021
- Effective From
- 22 Feb 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank