Recorded RBI impact
Fine: Rs 1.50 L
Monetary penalty · Fresh imposition
Published by RBI
4 Nov 2024
Case Brief
By an order dated October 21, 2024, RBI imposed a monetary penalty on Sahyog Urban Co-operative Bank Ltd., Udgir, Maharashtra, following supervisory findings from a statutory inspection with reference to its financial position as on March 31, 2023. RBI concluded that the bank contravened section 26A read with section 56 of the Banking Regulation Act, 1949 by not transferring the eligible amount to the Depositor Education and Awareness Fund within the prescribed time. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
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 after a statutory inspection (reference date March 31, 2023) found non-compliance. The sustained charge was that Sahyog Urban Co-operative Bank Ltd. had not transferred the eligible amount to the Depositor Education and Awareness Fund within the prescribed time, contrary to section 26A read with section 56 of the BR Act.
Operating Impact
The bank must absorb the monetary penalty and comply with the underlying statutory requirement going forward. No operational restriction is described in the release, but RBI notes that the penalty is without prejudice to any further action it may initiate.
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
Action Facts
- Primary Impact
- Fine: Rs 1.50 L
- Order Date
- 21 Oct 2024
- Effective From
- 21 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank