Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
1 Aug 2024
Case Brief
By an order dated July 26, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on Nagnath Urban Co-operative Bank Limited, Hingoli, Maharashtra. The penalty was levied for contravention of section 26A read with section 56 of the Banking Regulation Act, 1949, after RBI's statutory inspection and supervisory review found that the bank had failed to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed period. RBI stated that the action was taken under section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and supervisory review found non-compliance with section 26A read with section 56 of the Banking Regulation Act, 1949. The charge sustained was that the bank did not transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed time period. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act, after considering the bank's reply and oral submissions.
Operating Impact
The bank must absorb the monetary penalty and address the compliance lapse identified by RBI. The order does not itself restrict current operations, but it signals supervisory concern and leaves RBI free to initiate any further 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 Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 26 Jul 2024
- Effective From
- 26 Jul 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank