Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Oct 2024
Case Brief
By an order dated October 21, 2024, RBI imposed a monetary penalty on Shri Shiveshwar Nagari Sahakari Bank Limited, Basmatnagar, Hingoli, Maharashtra under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The action followed a statutory inspection and supervisory findings that the bank contravened section 26A read with section 56 of the BR Act by not transferring eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed period. RBI stated that the penalty was imposed after considering the bank's reply and oral submissions, and clarified that the action does not pronounce on the validity of customer transactions or agreements.
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 with reference to the bank's financial position as on March 31, 2023. RBI found that the bank had contravened section 26A read with section 56 of the BR Act by failing to transfer eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed time. The penalty was imposed after considering the bank's reply and oral submissions.
Operating Impact
The bank must absorb the monetary penalty and address the compliance lapse that triggered it. RBI may initiate any further action it deems appropriate, while the release does not by itself impose a new operational restriction on depositors or customers.
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 1.00 L
- Order Date
- 21 Oct 2024
- Effective From
- 21 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank